Hostess Fruit Pies bring back SO MANY fond childhood memories for me.
I remember when my Mom would make pies on baking day.
She would say: QK...I'm baking pies today!
Please be a "Dear Boy" & run down to the store and pick me up some Tricalcium Phosphate, Sodium Propionate, some Red Dye #40, a small package of Sorbitol,....and some Artificial Flavor.
And...hurry back because I want to get an early start on baking these pies! :biggrin2:
Oh and their existing money in their 401k's doesn't magically disappear. They just don't get anymore from Hostess.
My taste buds are gonna miss Hostess Cupcakes...but my waistline won't.
Y'know, as I start withdrawal from those magnificent pastries, wasting away to nothingness before your very eyes :wink: :rolleyes: I will rue this day and mark it on my calendar. And when the anniversary of this disastrous occasion comes in 2013, I will sit down and eat a whole chocolate pie just to conceal my tears....
Let me think out loud here a sec. They have an array of iconic products, not just Twinkies but
bread, pies, donuts, and more. The products are in high demand as judged from some of the comments
here and personal experience as a shopper, yet they claim they can't operate profitably.
It doesn't make sense.
I smell a rat.
In my case, I offered that the non-union folks in the office should also give up the same percentage of income, and, since they don't have a defined benefit pension, the only way to level the playing field is to get them to give up their 401k including what they have put into it.
Just as union members
give up what they put into their pensions... The money they could have had as wages, or put into a 401k, but instead took as part of a defined benefit pension.
So while some speculate about what caused the demise, here is something I found
on Forbes, not exactly a left wing blog.
What Killed Hostess Brands and Twinkies? - Forbes
The article explains that the company was sold 3 times since 1980 and accumulated debt while
losing assets on each occasion. It filed for bankruptcy twice, yet management gave themselves
raises while complaining that earnings of workers were too high in relation to the company's
"dismal financial position."
Caretaker Hostess was already in Chapter 7. A part of their restructuring was the reduction in wages which the bakers union refused to allow. (Also this was their second time through chapter 7, not third as someone said.) The Teamsters understood that this wasn't a case of the executives trying to gain an inch in negotiations but that it was the bottom line. The baker's union wouldn't allow a secret ballot on whether to continue the strike and leaders rejected Hostess' offers. When you get to the bottom line there's no choice left, so they stopped production and will sell off. Sadly the idiots that made the decision will suffer far less than the people they just put out of work. The union bosses tend to live much better than the membership.
Copied and paraphrased from What Killed Hostess Brands and Twinkies? - Forbes
Hostess has been sold at least three times since the 1980s, racking up debt and shedding profitable assets along the way with each successive merger. The company filed for bankruptcy in 2004, and again in 2011. Little thought was given to the line of products, ......
As if all this were not enough, Hostess Brands management gave themselves several raises, all the while complaining that the workers who actually produced the products that made the firm what money it did earn were grossly overpaid relative to the company’s increasingly dismal financial position.
....... But while Hostess Brands might soon become a forgotten name from the past, it’s unlikely such a fate awaits such signature products as Twinkies. Company executives have already asked for bankruptcy court permission to begin the process of selling off their famed product lines to other companies.