Show of HandsShow of Hands

Show Of Hands November 16th, 2012 12:00am

Hostess (maker of Twinkies, Ding Dongs, Wonder Bread, etc.) announced today that it is going out of business, blaming a labor union strike. Lame excuse, or lame union?

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Alienmoose1 New York
11/21/12 8:00 am

The board voted to give itself a 300% raise WHILE filing for their second bankruptcy AND slashing worker benefits 35%. America is misinformed and gullible.

Think Lovin Life
11/21/12 6:37 am

Yep, someone will buy the assets and lock out the union!

Think Lovin Life
11/21/12 6:23 am

$2.25m is cheap! The greed is with the union thugs. They are the leeches who produce nothing but unemployed numbskulls that listen to them.

Notstr8
11/20/12 5:58 am

Yet while this company has been performing Poorly, their CEO takes a 300% Raise from $750,000 to 2.25 Million!!?
Need to look clearly at the facts here and Not let your hate for President Obama and Unions take over your logic folks...

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Notstr8
11/20/12 5:49 am

Agree totally ... Read the same thing..
Unions are taking the blame here... But Greedy CEO and management staff brought this company down!
Not usually a fan of Unions as a retired corporate middle manager, but clearly money was mismanaged by the Folks At The Top!
Unions are Not to Blame!!!

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Notstr8
11/20/12 5:42 am

Their CEO took a 300% raise to 2.25 Million!!!!
While trying to cut the folks in the Union.
His Greed did this company in!

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benjaminbot
11/19/12 5:27 pm

Hostess was doomed initially, they never evolved their brand! They didn't make the effort to make a healthier Twinkie or Ding-Dong, etc... Not only that, but they didn't even vary flavor for basic products. A chocolate Twinkie would be expected in my mind...

zyga
11/19/12 4:38 pm

Unions keep work from being done...

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calibred7 California
11/19/12 9:20 am

Everybody knows from Econ a company can't shut down in the short
Run. This was due to failing over the long run, not because on union strike.

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Harrith2
11/19/12 8:18 am

Hostess has been through bankruptcy twice since 2004. While their union may not have helped the situation I would suggest that their slumping sales over the past 15 years had more to do with their going out of business.

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emsies Seattle
11/19/12 12:18 am

Noooo! My Funny Bones!
Well, at least I still have my Mallomars... *sniff sniff*

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kaikallio Ohio
11/18/12 10:11 pm

I love right to work states, where a few union workers pay dues so non union free loaders can be paid union wages at their expense. I can't believe people would have the audacity to say union workers are lazy freeloaders!

DrReid Ever present.
11/18/12 9:51 pm

This was the failure incompetent management covering their asses. A strong company can survive a strike. Hostess had a antiquated business model with a smaller profit margin than the completion due to overcompensated executives. BTW I am not a fan of unions, but I think they have the right to exist.

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BigBalls
11/18/12 9:07 pm

They went out of business because the product sucks. Nostalgia sucks too.

gadianton
11/18/12 5:23 pm

Live their twinkies and cup cakes and eat lots of them growing up. But it has being more than 15 years last time I eat one or my kids. Unhealthy product that don't have a market anymore

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budlight Michigan
11/18/12 1:42 pm

Twinkies could survive nuclear war but not 4 years of Obama..

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EIT Near You
11/18/12 1:02 pm

Anyone who designs their business around their labor force instead of designing it around the product and offsetting any gains and losses with other products is a foolish company. They only have themselves to blame. For all we know it could've been mismanagement of funds at the officer level.

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Brrrrrrrrr
11/18/12 10:46 am

the silver lining: ~16000 more union haters. (~2000 sheep)

ceej Michigan
11/18/12 8:39 am

Idk Salli, how much did they "put up"? Are you actually asking a question or expecting everyone to know as if these numbers are common knowledge? Are you talking about the founding of the company or recent actions? Hard to tell because your rant lacks a line of reasoning and ends in blaming Obama.

SugarShaq
11/18/12 7:17 am

How much money did those millionaires put on the line up front? How much did the union put up? Obama with his class warfare will destroy any incentive for investment. And the jobless rate will continue to rise.

SugarShaq
11/18/12 6:52 am

Perhaps the union should pool all their resources and buy hostess and give the jobs back. They did take millions in dues.

SugarShaq
11/18/12 6:51 am

What good is that if they all lose their jobs. The company has to turn a profit.

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ceej Michigan
11/18/12 6:33 am

This is like losing a football game and putting all the blame on the kicker who had one miss.

barbearnj Dreaming of Banff
11/18/12 4:18 am

The union kicked its own ass. Way to go, greedy bas***ds!

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baguafox Arizona
11/18/12 1:17 am

And, I am sure you are a doctorate holding economic mathematician that surely has a much firmer grasp on reality than us "liberals" (Lol, btw I am in PhD researcher) oh, how I love fiscally savvy repubs..

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baguafox Arizona
11/18/12 1:11 am

Lol.... Yep, multi million $$ company brought down by an evil union. Wow!!! Super solid logic ;))

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Jayseph Wasatch Front
11/18/12 12:47 am

Don't blame the UNIONS, they help employee's get the monies and benefits they earn and deserve.

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Zackisan VC Member
11/17/12 9:57 pm

I usually support unions but this time they have gone too far!

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SugarShaq
11/17/12 8:46 pm

But sales revenue is not profit. And a business cannot stay in business if they are breaking even or losing money.

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SugarShaq
11/17/12 8:44 pm

How much did they invest on the front end?

EarlyBird Portland
11/17/12 8:29 pm

There's now a box of Twinkies listed on eBay for $1000. Haha

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genone
11/17/12 8:09 pm

THANK YOU!!!!!!

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beamie Michigan
11/17/12 7:40 pm

So true! But also here in Michigan the drivers gave the company over 8% of their pay with no raise for the past 5 years. AND hold your breath union bashers! THEY ARE PART OF A UNION! So the union did try to help!

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kubu1218 Texas
11/17/12 7:33 pm

Isn't the definition of a parasite something that kills its host? (Ahem...unions...)

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balugadofis FOR MINECRAFTIA
11/17/12 7:28 pm

Twinkies, which are supposed to survive a nuclear holocaust, are removed from the earth 3 weeks before the end of the world?? Well played, myans.

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DocB
11/17/12 7:18 pm

CEO of Hostess raised his salary from about $750,000 to $2,555,000 a few months ago. Similar raises for other executives. No wonder the employees (union or not) balked at concessions, Very poorly led company with 86% debt-to-asset ratio. Should of been a shareholder revolt.

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kubu1218 Texas
11/17/12 5:56 pm

Way to go - stand up to get what you think is yours...learn how to compromise and work together and maybe everyone would still have a job. I'm sure those people who were willing to compromise thank you for getting them canned. Super job.

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sauncon
11/17/12 5:56 pm

Before you blame unions look at the leadership this company had and the bonuses paid to those in leadership.

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SugarShaq
11/17/12 5:36 pm

How much did they invest to begin with? Smart people don't normally invest to lose money. Liberals maybe, ie solyndra and 10+ other Obama "investments" with OUR money.

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SugarShaq
11/17/12 5:24 pm

Liberals don't understand the economics of making a profit to stay in business.

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Poc1976 Indiana
11/17/12 5:17 pm

Unions are antiquated and no longer needed. OSHA and other agencies take care if safety, etc. The only thing they do now is artificially inflate wages.

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USA1st
11/17/12 4:50 pm

even though I'm not a fan of Obama, Id say this is a result of that union. I'm gonna miss all the awesome snacks!

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WhoDatNation Louisiana
11/17/12 4:03 pm

excuse! lots of business are sinking in this spending frenzy of NObama!

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ceej Michigan
11/17/12 3:58 pm

Sales revenue does not mean profit. They had a net loss over $300 million in 2011 and filed for bankruptcy twice in the last eight years. They were probably already exploring the idea of selling. The rich get richer off a sale and make the cowardly move of blaming the bakers. Real leadership.

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Nerdz Texas
11/17/12 3:43 pm

Why will we do without our beloved twinkies?!?!?! :(

roybiker12
11/17/12 3:18 pm

Forbes Magazine is speculating that the Mexican bakery company, Groupo Bimbo, may purchase Hostess or at least purchase their brand names. This may be good for labor, Mexican labor.

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