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Twinkies Maker Hostess to Liquidate Company if Strikes Persist
By JEANETTE TORRES
Nov. 15, 2012
The end for Twinkies may just be hours away. Hostess Brands Inc., the maker of the iconic snack, announced on Wednesday that it will liquidate the entire company if not enough striking employees return to work by Thursday evening.
"We simply do not have the financial resources to survive an ongoing national strike," Hostess CEO Gregory Rayburn said in a statement Wednesday. "Therefore, if sufficient employees do not return to work by 5 p.m., EST, on Thursday to restore normal operations, we will be forced to immediately move to liquidate the entire company, which will result in the loss of nearly 18,000 jobs."
The strikes began on Nov. 9, when the company imposed a contract that would cut workers' wages by 8 percent. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) said the contract would also cut benefits by 27 to 32 percent.
Hostess, which is privately owned by two hedge funds, has struggled in recent years with two bankruptcy filings. The company said it "has done everything in its power to pursue a reorganization of its business as a going concern, including spending the better part of 18 months negotiating with its key constituents to obtain a consensual agreement."
"It is now up to Hostess' BCTGM represented employees and Frank Hurt, their international president, to decide if they want to call off the strike and save this company, or cause massive financial harm to thousands of employees and their families," Rayburn said.
If the strike continues, Hostess said it will file a motion on Friday to wind-down the company and sell all of its assets. If the U.S. Bankruptcy Court grants the motion, the company will then begin to close all of its operations as early as Nov. 20.
"Hostess Brands is making a mockery of the labor relations system that has been in place for nearly 100 years," union President Frank Hurt said in a statement earlier this week. "Our members are not just striking for themselves, but for all unionized workers across North America who are covered by collective bargaining agreements."
The union, which represents more than 80,000 industry workers, maintains that the company's policies will bring its members back to workplace standards of the 1950s.
ABC News' David Wright contributed to this report.
By JEANETTE TORRES
Nov. 15, 2012
The end for Twinkies may just be hours away. Hostess Brands Inc., the maker of the iconic snack, announced on Wednesday that it will liquidate the entire company if not enough striking employees return to work by Thursday evening.
"We simply do not have the financial resources to survive an ongoing national strike," Hostess CEO Gregory Rayburn said in a statement Wednesday. "Therefore, if sufficient employees do not return to work by 5 p.m., EST, on Thursday to restore normal operations, we will be forced to immediately move to liquidate the entire company, which will result in the loss of nearly 18,000 jobs."
The strikes began on Nov. 9, when the company imposed a contract that would cut workers' wages by 8 percent. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) said the contract would also cut benefits by 27 to 32 percent.
Hostess, which is privately owned by two hedge funds, has struggled in recent years with two bankruptcy filings. The company said it "has done everything in its power to pursue a reorganization of its business as a going concern, including spending the better part of 18 months negotiating with its key constituents to obtain a consensual agreement."
"It is now up to Hostess' BCTGM represented employees and Frank Hurt, their international president, to decide if they want to call off the strike and save this company, or cause massive financial harm to thousands of employees and their families," Rayburn said.
If the strike continues, Hostess said it will file a motion on Friday to wind-down the company and sell all of its assets. If the U.S. Bankruptcy Court grants the motion, the company will then begin to close all of its operations as early as Nov. 20.
"Hostess Brands is making a mockery of the labor relations system that has been in place for nearly 100 years," union President Frank Hurt said in a statement earlier this week. "Our members are not just striking for themselves, but for all unionized workers across North America who are covered by collective bargaining agreements."
The union, which represents more than 80,000 industry workers, maintains that the company's policies will bring its members back to workplace standards of the 1950s.
ABC News' David Wright contributed to this report.
Hostess CEO gives striking workers Thursday deadline
Comments 182 2702
By Chris Durden
KWCH 12 Eyewitness News
8:30 p.m. CST, November 14, 2012
(EMPORIA, Kan.)—
Hostess Brands CEO said Wednesday the company will liquidate unless striking workers return to the job by the end of the day on Thursday.
"We simply do not have the financial resources to survive an ongoing national strike," Gregory Rayburn said in a statement.
Workers are protesting a contract imposed by a bankruptcy court. The bakers union has called the contract "outrageous."
A liquidation would result in more than 18,000 workers losing their jobs.
Over the weekend, workers in the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union, or BCTGM, went on strike at Hostess-owned plants in several states. The strike includes workers at the Dolly Madison plant in Emporia.
Hostess filed for bankruptcy in January, the second time it has done so since 2004.
Union employees in Emporia say in August of last year the company stopped giving them their pension earning. They say it now wants to cut wages by eight percent.
"You put in the time, you put in the years, I mean, we all have dedicated our lives to the company and they just don't appreciate it," said one striking worker.
Steven Blakey says he he was looking forward to retiring from the company. He says what's going on now hurts not just him, but his family as well.
"I spent 30 years of my life, missed a lot of time with my family, now it's time for me to enjoy that time and I have to keep working, I'm missing out on a lot." said Blakey.
The Dolly Madison plant in Emporia is one of the city's largest employers.
Tuesday, Hostess said it will permanently close bakeries in Seattle, St. Louis and Cincinnati. Those three plants employ 627 people combined. The strike is impacting 24 of Hostess' 33 plants.
Comments 182 2702
By Chris Durden
KWCH 12 Eyewitness News
8:30 p.m. CST, November 14, 2012
(EMPORIA, Kan.)—
Hostess Brands CEO said Wednesday the company will liquidate unless striking workers return to the job by the end of the day on Thursday.
"We simply do not have the financial resources to survive an ongoing national strike," Gregory Rayburn said in a statement.
Workers are protesting a contract imposed by a bankruptcy court. The bakers union has called the contract "outrageous."
A liquidation would result in more than 18,000 workers losing their jobs.
Over the weekend, workers in the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union, or BCTGM, went on strike at Hostess-owned plants in several states. The strike includes workers at the Dolly Madison plant in Emporia.
Hostess filed for bankruptcy in January, the second time it has done so since 2004.
Union employees in Emporia say in August of last year the company stopped giving them their pension earning. They say it now wants to cut wages by eight percent.
"You put in the time, you put in the years, I mean, we all have dedicated our lives to the company and they just don't appreciate it," said one striking worker.
Steven Blakey says he he was looking forward to retiring from the company. He says what's going on now hurts not just him, but his family as well.
"I spent 30 years of my life, missed a lot of time with my family, now it's time for me to enjoy that time and I have to keep working, I'm missing out on a lot." said Blakey.
The Dolly Madison plant in Emporia is one of the city's largest employers.
Tuesday, Hostess said it will permanently close bakeries in Seattle, St. Louis and Cincinnati. Those three plants employ 627 people combined. The strike is impacting 24 of Hostess' 33 plants.
This company has been hurting for a long, long time.
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