White Plains Judge Sends Twinkies Bankruptcy to Mediation

A White Plains bankruptcy judge has ordered Hostess back into mediation with union workers.

Instead of approving a proposed bankruptcy filing by the 82-year-old Hostess Company- maker of popular snack food brands like Twinkies, Ding Dongs, and Ho-Hos, a White Plains court has reportedly ordered management and members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International union to consider mediation to settle their current contract dispute.

Both groups agreed and will enter closed door sessions Tuesday.

Late last week, the Hostess management announced they could not come to a contract agreement with the union workers and would go out of business. The announcement created a minor frenzy as people made a run to buy their favorite snack cakes and treats. 

In other reports, there may already be other companies interested in buying the popular Twinkies brand including Georgia based Flowers Foods which also makes Tastykake snack foods. Interest has also reportedly been expressed by Bimbo Group of Mexico; the company makes Sara Lee and Entenmann's food products.

mike sullivan November 19, 2012 at 11:33 PM
sounds like the company tried to bust the union ,but they called their bluff.Hostess never had any intensions of going out of business.They will be back up and running after the holidays
FredoFashionsHimselfAWriter November 19, 2012 at 11:43 PM
Thank God. Is that true, we might still be able to eat this poison again after the holidays. God Bless America.
dita von struedel van trappyodel November 20, 2012 at 12:00 AM
The Company should bust the union. Unions are the downfall of this economy. Ship the jobs to lower cost manufacturing markets.
Walden Macnair November 20, 2012 at 12:26 AM
Smelly, I did some home work on this one and although the unions finally striked, there was a lot more to this than that. You see Hostess was taken over by a private equity firm who mortgaged it to the hilt and then when they couldn't meet their bills got the union to agree to pay cuts and benefits reductions. At the same time they've had six CEO's in eight years (none of whom had business experience in running a bakery of this size or any size for that matter) But even without experience the CEO got a 300% raise and brought in over 2 million a year along with a highly paid senior management team. Then when the company was effectively bankrupt, they figured they'd sell it and reap some more profits for their investors and just put all the employees out of work. So you see Smelly, it wasn't the unions, it was a private equity firm and a bunch of rich guys who don't give a damn about anybody but themselves. .
dita von struedel van trappyodel November 20, 2012 at 12:33 AM
If the Company is "effectively bankrupt" that means it has little or no value to anyone. So, their investors lose their whole investment. Nice try but the real problem here, as in a lot of other American businesses, is greedy unions. No wonder so many jobs wind up in Asia.
Bob Rohr November 20, 2012 at 12:39 AM
What Walden says is correct. These Corporate raiders come in clean out a Company and blame it on Unions. If it were not for Unions there would be no 5 day work week, overtime or Workman's Compensation.
smellyp@nts November 20, 2012 at 12:41 AM
unions are fine in principle, but its union leaders who abuse them and turn the public against them..
Nummy November 20, 2012 at 12:42 AM
So our we to give up unions and become Asia, can't wait to work for you smelly at 8 buck an hour.
smellyp@nts November 20, 2012 at 12:49 AM
none of whom had experience running a bakery? c'mon. where's ur business sense? A ceo is a ceo is a ceo. Really hurt ibm that Lou Gerstner had no computer experience, huh? ya sure got your stereotype rap down good tho. "rich guys who don't give a damn about anybody...." i never heard of a poor philanthropist, did u?
dita von struedel van trappyodel November 20, 2012 at 12:57 AM
Typical uniformed, drink the kool aid mentality. How do corporate "raiders" ( a quaint term from the 1980's) "clean out" companies and blame it in on the unions? Do you mean clean out the "dead wood"... this is more like it. Many US companies are fat, dumb and happy and headed for certain death at the hands of foreign competition. Private equity firms do a noble and useful job in dealing with these dead beats and turning these companies into strong and viable entities capable of competing on the world's stage. (All the world is a stage as you know)
dita von struedel van trappyodel November 20, 2012 at 12:58 AM
You are kind of cute Nummy, where have I seen you before? You look like someone famous.
smellyp@nts November 20, 2012 at 12:58 AM
thx for confirming unions and entitlements are one and the same. nice work if u can get it
dita von struedel van trappyodel November 20, 2012 at 01:08 AM
You're welcome brother
smellyp@nts November 20, 2012 at 01:12 AM
don't mention it, sis
Capt. Crunch November 20, 2012 at 05:51 AM
Why is a Twinkie considered a poison ? Have you ever seen the tv shows that show the viewers how food products are made ? The factories are spot-less and use computers and robots in the production, which begins with same ingredients as we use in our kitchens. The end result is food which is quickly packaged and shipped to consumers so they can enjoy the freshest product, which often are enriched with vitamins and minerals.
Chris Clement November 20, 2012 at 12:31 PM
@Walden, thanks for showing us the other side of the coin. Is logical and makes sense. As for unions, they once were necessary and did give us the 5-day work week, and then some. But IMO they've mostly outlived their usefulness. Union heads became greedy, on the backs of consumers. AND tax payers. Their requests (demands) are not sustainable. IMO, we're in a mess due to greed.
Tyler Durden November 20, 2012 at 02:02 PM
One time in 3rd grade I traded a Ring Ding for two Twinkies. Best trade ever.
peter homolya November 20, 2012 at 04:00 PM
we elected a president with no experince , and we are going bankrupt faster than any other leader. why not a bakery?
John Gruber November 20, 2012 at 04:55 PM
right Bob, unions have a purpose, at this point though they are taking more than they need. They certainly due have a continuing purpose because you can bet companies would take advantage. They need to find common ground between the company and the worker
Liz Claire November 20, 2012 at 08:42 PM
Regarding "poison", Capt. Crunch, BusinessWeek reports: "Maybe the most surprising thing about the company’s history is that it has lasted this long, said Steve Ettlinger, the New York-based author of “Twinkie, Deconstructed.” Petroleum Based Twinkies’ moisture comes from oil, their vitamins are fermented or created out of petroleum, and the main ingredient in the cream is probably an emulsifier called Polysorbate 60, Ettlinger said." http://www.businessweek.com/news/2012-11-19/twinkie-history-spiced-with-murder-hints-icon-to-survive None of those ingredients are in my kitchen,
Walden Macnair November 20, 2012 at 08:54 PM
Capt., Whether Twinkies are enriched with Vitamin D or not is really a moot point. The point is, why is Hostess going bankrupt. The parent company of Hostess has made an offer to the union workers. That offer calls for an immediate 8% reduction in compensation followed by an additional 27 to 32% over five years. Hostess knows that this would never be accepted and the wall streeters who run the company from Silver Point and Monarch that own the company stand to make a fortune by liquidating it. Certainly, over the years the cost of union labor has risen and one could blame them for part of the demise, but it seems the truth is this was a planned failure. Whether Hostess gets liquidated or stays in business, the vultures at Silver Point and Monarch still make money. This isn't capitalism anymore, this is exploiting people for profit. The hell with the workers, the hell with the families, the hell with the community. Just get me that new Lamborghini. Hope they find out what Karma is.
Ruthmarie Hicks November 21, 2012 at 02:35 PM
Anyone with a handle like SMELLY PANTS is no capitalist...he's just drinking the tea party Kool -Aide. In other words- he's just another sheeple with no knowledge whatsoever. 5 day work week? 8 hour work day? I haven't seen that in YEARS. The weakening of unions has created a 24/7 workday world where there is no down time. We need the unions to get back on their feet.


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