I still haven't heard the outcome:
Hostess has set a deadline of 2 p.m. today for workers to return to work or the company will file to liquidate the company in bankruptcy court.We have a Hostess bakery here in Sacramento. When I was a kid I'd love it when we drove nearby because the smell of baking bread was absolutely delicious. Someone later decided that such a smell was "pollution", though, and the bakery had to refit in such a way that we couldn't smell the bread anymore. That memory is just one of those things from my childhood that's never left me.
The Irving, Texas-based company, which employees nearly 300 workers in Sacramento, will file a motion to liquidate the company on Friday if not enough striking employees return today to allow the food maker to resume normal operations.
Are there to be no more Twinkies, no more Ho-hos, no more Ding Dongs, no more Wonder Bread? I'll let you know when I know.
Update, 11/16/12: Good job, unions, your 18,500 workers are now unemployed:
Adieu, Twinkies, at least for now. Hostess Brands said Friday it has asked a court's OK to liquidate the company, spelling the possible end for the iconic, yellow, cream-filled delight.Update #2, 11/16/12: Democrats screw up Hostess:
The move shuts down one of the nation's oldest and largest producers of baked goods. Founded in 1930, it produces such well-known brands, aside from Twinkies, as Ding-Dongs, Ho Ho's, Sno Balls and Donettes, not to mention Wonder bread, which the company says is the best-selling white bread in the United States.
In a statement, Hostess said its bakery operations have been suspended at all plants and that it would lay off most of its 18,500 workers to focus on selling its assets. It said it has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets, including 33 bakeries and 565 distribution centers.
Perhaps one of the most interesting aspects of the just announced Hostess liquidation, one that will be largely debated and discussed in the media, or maybe not at all, is the curious cast of characters and the peculiar history of this particular bankruptcy. Some may not be aware that the company's Chapter 11 (or colloquially known as 22) bankruptcy filing this January, which today became a Chapter 7 liquidation, was the second one in the company's recent history, with Hostess, previously Interstate Bakeries, emerging from its previous protracted multi-year bankruptcy in 2009. What is curious is that its emergence had all the drama of a anti-Mitt Romney PAC funded thriller, with a PE firm, in this case Ripplewood holdings, injecting $130 million in order to obtain equity control of Hostess as it was emerging last time. There were also more hedge funds, investment banks, strategic buyers, politicians involved in this particular story than one can shake a deep fried numismatic value Twinkie at. More importantly, however, as America has been habituated following the last season of the reality TV show known as the presidential election, if Private Equity then "bad." Only this time there is a twist: because it wasn't really PE that was the pure evil in the Obama long-term campaign, it was associating PE with Republicans, and thus: with jobs outsourcing. And here comes the Hostess twist: because Tim Collins of Ripplewood, was a prominent Democrat, a position which allowed him to get involved in the first bankruptcy process in the first place, due to his proximity with the Teamsters' long-term heartthrob Dick Gephardt (whose consulting group just happens to also be an equity owner of Hostess). In other words, the traditional republican-cum-PE scapegoating strategy here will be a tough one to pull off since the narrative collapses when considering that it was a Democrat who rescued the firm, only to see it implode in a trainwreck that has resulted in the liquidation of a legendary brand, and 18,500 layoffs.Why does this matter? Ask Richard Trumka.
But it only gets better. Because the full cast of characters involved here is quite stunning....