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Hostess cupcake split to reveal creamy center.
Hostess Brands and the union that represents its striking workers have agreed to go into mediation in an attempt to avert liquidation of the company:
The company and the union agreed to mediation at the behest of the federal judge overseeing Hostess’ Chapter 11 case, Robert Drain of the southern district of New York. Should the talks collapse, the company will be back in court to seek approval of a close-out plan on Wednesday morning.
For now, Twinkies have another shot at staying alive. (In the long term, Twinkies and other top Hostess brands were always going to come back from the dead after being sold off to other companies.)

Originally posted to Daily Kos Labor on Mon Nov 19, 2012 at 12:51 PM PST.

Also republished by Daily Kos and In Support of Labor and Unions.

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Comment Preferences

  •  Yuck. I would much rather the employees (5+ / 0-)

    reorganize and form their own company and produce real quality food. This stuff is poison.

  •  Whatever happens, I hope they mutually agree (8+ / 0-)

    ... to never make Hostess Sno Balls again. Those things are hellish.

    "So, am I right or what?"

    by itzik shpitzik on Mon Nov 19, 2012 at 12:55:32 PM PST

    •  but, but,!!!!! (0+ / 0-)

      Haven't had one in years, but loved 'em as a kid.

      Hmmm.  Perhaps I should indulge myself this week.  Just in case.

      I'd even eat a white one, if that's all I could get.
      nom nom nom nom nom nom nom nom nom no.  oh.

      I'm ok now.  Nothing to see here. Moving along.

      Marti :-)

      We cannot call ourselves a civilised society if we refuse to protect the weakest among us.

      by The Marti on Mon Nov 19, 2012 at 02:33:45 PM PST

      [ Parent ]

    •  This scam cost 400 scarce union jobs in my deep (2+ / 0-)
      Recommended by:
      Homa Sapiens, DaveW

      south hometown, and all the media talks about is the fukin BRAND!  I didn't really expect to see this level of discourse here.  This will be pointed to as a reason not to vote'yes' around here for years.

      I preach the church without Christ, where the lame don't walk, the blind don't see and what's dead stays that way! Hazel Motes in "Wise Blood"

      by chalatenango on Mon Nov 19, 2012 at 03:19:39 PM PST

      [ Parent ]

      •  People are allowed to talk about how truly... (2+ / 0-)
        Recommended by:
        PsychoSavannah, auapplemac

        ...awful these products are, as food, without being scolded. I fully understand that a lot of jobs are at stake, and I hope the mediation, which may be instigated by a potential purchaser of the company from what I'm reading leads to at least a temporary reprieve.

        "So, am I right or what?"

        by itzik shpitzik on Mon Nov 19, 2012 at 03:39:52 PM PST

        [ Parent ]

      •  Sick to death of all the cutesy media (1+ / 0-)
        Recommended by:

        twaddle about whether we might have to do without our twinkies and the rest of the toxic treats, whether we should stockpile, how to come down easy from the sugar withdrawal. What this means for stock buyers. What will happen to the brand. Nostalgia stories about how somebody just loved them to death as a kid. Blablablablabla.

        Rarely a word about the issues at stake or the whole background of crappy corporate management making others pay for their own screwups. You think it's bad around here, tune into your friendly "news". Even NPR is on the blabber wagon.

    •  My daughter likes them (1+ / 0-)
      Recommended by:
      itzik shpitzik

      but for the life of me I can't understand why.

      She is in her late forties, by the way.

      The thought that life could be better is woven indelibly into our hearts and our brains. – Paul Simon, "Train In The Distance."

      by Omir the Storyteller on Mon Nov 19, 2012 at 04:09:47 PM PST

      [ Parent ]

  •  The mediation will not work (17+ / 0-)

    The vulture capitalists are already salivating over breaking the company up and cashing out more.

    They will just use this asa  ruse to run the union through the mud.

    These talks can't be taken seriously as they will just be used to run down the union more.

    Sorry I am cynical, but this is just IMHO

    Never underestimate stupid. Stupid is how reTHUGlicans win!

    by Mannie on Mon Nov 19, 2012 at 12:56:06 PM PST

  •  Probably because they are getting bought (4+ / 0-)
    Recommended by:
    MKinTN, Amber6541, pgm 01, PsychoSavannah

    Sun Capital May Buy Hostess

    The buyer wants to maintain Hostess as an ongoing concern and thus needs employees to operate the factories.  My guess is that this mediation is just a bridge to get workers back at production before the company gets bought.

    •  Sun Capital, Metropolous and Company (3+ / 0-)
      Recommended by:
      The Marti, TomFromNJ, PsychoSavannah

      Sun Capital has expressed interest in buying and maintaining the union presence.  Metropolous and Company wants to buy (no word about the union).  Bimbo is sniffing out the situation, and they run a lot of UFCW factories in the US.

      It would be nice to peel off Hostess' current owners, whose business strategy appears to be that of the tapeworm.

      "Politics should be the part-time profession of every citizen who would protect the rights and privileges of free people and who would preserve what is good and fruitful in our national heritage." -- Lucille Ball

      by Yamaneko2 on Mon Nov 19, 2012 at 02:07:20 PM PST

      [ Parent ]

  •  I believe you mean (6+ / 0-)
    Twinkies have another shot at staying alive.
    Hostess has another shot at staying alive.  Everyone knows Twinkies never die.

    The system isn't broken; it's fixed - OWS sign

    by john07801 on Mon Nov 19, 2012 at 01:00:35 PM PST

  •  Some Hostess Products won't disappear (4+ / 0-)
    Recommended by:
    ColoTim, a2nite, The Marti, PsychoSavannah

    Some Canadian firms own the brand names out right and they say they'll continue to produce them while licking their chops that the American market will open up for them!!

    Still doesn't help the American workers who are once again getting Royally Screwed by the reagan {Bain} style capitalism!!

    Vets On FLOTUS and SLOTUS, "Best - Ever": "We haven't had this kind of visibility from the White House—ever." Joyce Raezer - Dec. 30, 2011

    by jimstaro on Mon Nov 19, 2012 at 01:07:32 PM PST

    •  Wonder Bread.... (2+ / 0-)
      Recommended by:
      The Marti, PsychoSavannah

      Snack giant Hostess shuttering US business, but Canada unaffected

      In Canada, Saputo Inc., the country’s largest snack cake maker, and George Weston Ltd. already own the rights to some Hostess brands.

      Weston’s senior vice-president of investor relations, Geoffrey Wilson, said the company is not interested in any Hostess assets that might come up for sale.

      But Weston is keen on continued investment in and marketing of Wonder Bread, for which it owns the Canadian rights, rights that are not affected by events south of the border, he said.

      “It’s a very good seller. It’s a very important brand to us,” he said.

      Vets On FLOTUS and SLOTUS, "Best - Ever": "We haven't had this kind of visibility from the White House—ever." Joyce Raezer - Dec. 30, 2011

      by jimstaro on Mon Nov 19, 2012 at 01:12:54 PM PST

      [ Parent ]

  •  I wish them well, but Drake's snacks are better (1+ / 0-)
    Recommended by:
    The Marti

    Chocolate-covered Yodels and Ring-Dings are much better than their Hostess' counterparts: Ho-Hos and the pictured Ding-Dongs.

    I'm wondering if this whole thing wasn't just cooked by marketing a la New Coke.

    Coming Soon -- to an Internet connection near you:

    by FischFry on Mon Nov 19, 2012 at 01:08:24 PM PST

  •  I don't know why the trustee would not set aside (7+ / 0-)

    as a preference the compensation packages that were given to top executives, along wih the golden parachute of $1.95 million for the CEO. A number of buyers are probably salivating at the possiblity of paying bargain prices for the intellectual property rights, and infrastructure without the cost of the unions and previously agreed upon contractural rights of pensioners. You can call it whatever you want, but I think it's theft, plain old fashioned theft - theft by conversion, theft by taking, theft by receiving, theft by sudden snatching - what was done to the pension funds.

  •  Can they get the same judge (4+ / 0-)

    to tell the National Hockey League Owners and the Players Association to get a deal signed soon.  Missing my NHL hockey, enough to drive me to buy HoHos and Ding Dongs.

    Why do Republicans Hate Americans?

    by Caniac41 on Mon Nov 19, 2012 at 01:12:28 PM PST

  •  Will work for food (2+ / 0-)
    Recommended by:
    Mannie, The Marti

    Twinkies are not "food."

    It must be a real bitch working for Vulture capitalists. After stealing people's pension funds they want to "negotiate" in good faith?

    The market for sugary snack food brand name rights must be soft, or there wouldn't be any offers on the table.

    Maybe one day the Fourth Estate will take their jobs seriously. Or not..

    by Anthony Page aka SecondComing on Mon Nov 19, 2012 at 01:25:20 PM PST

  •  Was ayn rand the Hostess CEO....? (1+ / 0-)
    Recommended by:

    The Hostess debacle and all the other recent outrageous statements by CEOs around the country planning on cutting off their noses to spite their faces/take their ball and go home by shutting down their companies (Aetna, PapaJohns, Florida real estate guy, etc.) really leave me speechless.

    Their arguments are basically:  "Now my taxes and health care costs are going up!  Screw all of you for voting for the Black Guy!  I'm gonna shut down the company and retire!  Cuz I won't be able to make all the money I want to!"

    For none of these d-bags was it a problem re: their companies no longer being able to run effectively or being able to make a profit; it was all about their bottom line in how much cash would be thrown off to allow them to continue to be multi-millionaires and billionaires.

    It all comes down to:  Gee, I'll end up making only hundreds of millions of dollars instead of billions!  Fuck that!  Screw all of you, I'm goin' home and retire on the beach and you all can suffer!

    Just like the "heroes" in an ayn rand novel.

    What she and they completely ignore is the fact that:  If they're unwilling to run their companies and make money in a given industry, there are plenty of other hungry competitors in every industry that will immediately step into the gap.

    The only person being hurt is the idiot deciding to forego profitable cashflow out of spite.

    Imagine if Steve Jobs or Bill Gates felt this way; if either one of them had at any point simply decided that they, personally, were so important to a given industry that they could extort their preferred behavior from customers or politicians by threatening to retire or shut down their companies, the market reaction would have been--punish their stock, and reward any and all competitors that would immediately be able to step in and fill the gap in the market left by such foolish hubris.

    The tantrum thrown by Hostess is in a similar vein.  "We're gonna hold Twinkies hostage!  If we don't get what we want from those mean old unions, there won't be any Twinkies anymore!"

    And the "ignant" masses believe it.

    If Hostess were to actually liquidate, some of their assets would be all their various brands that are household-names (twinkies, ho-hos, ding-dongs, etc.), and the accountants assign a value to each of these things.

    There is no such thing as Reardon Steel in the real world; given a recipe, anyone can build anything, including a Twinkie.

    If the market wants something, it will make it happen.  Including twinkies, and there's nothing that a petulant CEO can do about it.

    "When and if fascism comes to will not even be called 'fascism'; it will be called, of course, 'Americanism'" --Professor Halford E. Luccock of Yale Divinity School; New York Times article from September 12, 1938, page 15

    by demongo on Mon Nov 19, 2012 at 01:27:46 PM PST

    •  I think they are all "Going Galt" (1+ / 0-)
      Recommended by:

      There seems to be a lot of CEOs who are convinced that they can "shrug", and that we will have to capitulate. If Papa John's were to vanish, we'd just buy our pizza somewhere else, we don't need them. Supply-side economics is backwards, demand-side makes sense. We just don't need them, we have alternatives.

      Even with Reardon Metal, anyone with a piece of the metal could make their own - at least if they know metallurgy, and there are plenty who do. It is only government-granted patent that would keep anyone from copying it.

      The wolfpack eats venison. The lone wolf eats mice.

      by A Citizen on Mon Nov 19, 2012 at 08:46:24 PM PST

      [ Parent ]

  •  What's the point? (3+ / 0-)
    Recommended by:
    boadicea, The Marti, chalatenango

    The unions already had arrangements with Hostess upper management. Hostess reneged than demanded more concessions. The union members make less money now than they did years ago. Unless they're going to keep what they have and get back what they lost, all this will do is kick the can down the road a few more years until the venture capitalists du jour that own the brand decide to screw them again.

  •  Please use different photo because (2+ / 0-)
    Recommended by:
    norm, white blitz

    it would be much nicer to select images to promote the good union workers themselves instead of that piece of junk food.

    You've got this fantastic opportunity....why give it over to a bad corporate brand image?

    •  Instead, use a picture (0+ / 0-)

      of one of Hostess' more tasty and nutritious products, such as...  well...  the healthy one, whatever that is.  Whole-wheat Twinkies maybe?

      Early to rise and early to bed Makes a man healthy, wealthy, and dead. --Not Benjamin Franklin

      by Boundegar on Mon Nov 19, 2012 at 03:10:44 PM PST

      [ Parent ]

  •  too late for only (0+ / 0-)

    Too late for only wholesale bakery in Anchorage.
    Doors shut. 90 people let go.  Anchorage school district trying to find new source for their bread products. Outback steakhouse also contracted with them for their honey wheat bread.

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