Tuesday, January 17, 2012

Sign of the apocalypse

Twinkies maker Hostess seeks bankruptcy protection, Associated Press, January 11, 2012
"NEW YORK — Hostess Brands Inc., the maker of Twinkies and Wonder Bread, is seeking bankruptcy protection, blaming its [labour costs] and  tough economic conditions.

"The filing on Wednesday comes just two years after a predecessor company emerged from bankruptcy proceedings..."
So it seems, if urban myths are believed, the product has a longer shelf life than its maker.
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  1. Norm, in reading the link to the story...

    "They`re a PRIVATE company so they don`t disclose sales figures"snip...

    But if you read a little further it talks about its competition being "non-union" snip..

    Bankruptcy protection, the old stand by bail-out on workers..

    This is how companies break unions and get out of pensions for present and retired employess..

    Check out what airlines and trucking outfits have done to retired workers and their pensions..

    They pay millions to a legal firm to remove pensions..

    Perhaps a more thorough look is required.

    Eyes Wide Open

  2. As Grant suggests, it is likely all about union busting and pension dumping (onto the taxpayer) but when it comes to urban myths, I've always enjoyed the one about when they compared Wonder White Bread with Kleenex. The findings were that:

    Kleenex was more nutritious, BUT....

    Wonder Bread was more absorbent!

  3. The comments about pension dumping are correct. Just about the only material debt of Hostess Brands is to workers' pension funds. They owe almost $1 billion for pensions, more than 10 times the amount of other liabilities. It is clear they stopped making pension contributions some time ago and are using bankruptcy laws to evade payment. Wonder Bread, by the way, is manufactured in Canada under licence by Weston Foods (Loblaws, SuperStore, etc.)

  4. In the age of corn pone Nazi politics in the USA, the worker is now the main target of "big money". Better blame the worker and make him pay dearly for the mistakes made by corporate directors who have made disastrous corporate decisions.

    Twinkies, the great junk food of the 60's and 70's has grown rather stale in the consumers mind. Instead of marketing new food goods, nothing was done until the company was on the verge of going bankrupt. Adiós worker's pensions.

    Hostess is a yesterday's company, marketing yesterday's goods, yet they are allowed to play today's bankruptcy game.



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