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-   -   R.I.P. Hostess bakery (http://www.insidehoops.com/forum/showthread.php?t=281655)

Bucket_Nakedz 11-16-2012 11:33 AM

R.I.P. Hostess bakery
 
http://money.cnn.com/2012/11/16/news...stess-closing/

dang, now where am i gonna get my ho ho's fix? and how we gon' snack when the zombie apocalypse arrive?

nah, but seriously, i feel for the familys that will be affected. union strike: when keep it real goes wrong. oh and them fat kids gon' be maaad...

bagelred 11-16-2012 11:38 AM

Re: R.I.P. Hostess bakery
 
I'm sure another corporation will buy Hostess. It's too big of a brand to just disappear.

Real Men Wear Green 11-16-2012 11:43 AM

Re: R.I.P. Hostess bakery
 
If they completely disappear it's a sad day for the economy and the jobs lost but food like they produce is the reason why diabetes is exploding.

niko 11-16-2012 11:58 AM

Re: R.I.P. Hostess bakery
 
Quote:

Originally Posted by bagelred
I'm sure another corporation will buy Hostess. It's too big of a brand to just disappear.

No, they are selling off the individual properties already. So Hostess is dead, albeit you probably will get Twinkies, etc. I don't think anyone is buying Hostess in total.

Tarik One 11-16-2012 12:00 PM

Re: R.I.P. Hostess bakery
 
Quote:

Originally Posted by Real Men Wear Green
If they completely disappear it's a sad day for the economy and the jobs lost but food like they produce is the reason why diabetes is exploding.

They've been pretty expensive the past few years. $1.29 for a pack of Twinkies. No thanks. Their competition has been slowly putting them out of business with better prices.

gigantes 11-16-2012 12:12 PM

Re: R.I.P. Hostess bakery
 
Interesting, the fight that happened between the Teamsters and the bakers union. If the Teamsters had had their way, Hostess would have survived. Not sure the spirit of Jimmy Hoffa would have approved, but interesting...

kNicKz 11-16-2012 12:19 PM

Re: R.I.P. Hostess bakery
 
:facepalm

More and more household American names dieing out

iggy> 11-16-2012 12:21 PM

Re: R.I.P. Hostess bakery
 
Let's all blame Obama.



Time to secede

Droid101 11-16-2012 12:27 PM

Re: R.I.P. Hostess bakery
 
The $700 million in debt is what killed Hostess. Their hedge fund managers hollowed out the company, and used the cash to purchase their next victim. When Hostess couldn't make their loan payment, it was up to the employees to pony up the difference. The owners had already made their loot.

Rose 11-16-2012 12:33 PM

Re: R.I.P. Hostess bakery
 
Quote:

Originally Posted by Droid101
The $700 million in debt is what killed Hostess. Their hedge fund managers hollowed out the company, and used the cash to purchase their next victim. When Hostess couldn't make their loan payment, it was up to the employees to pony up the difference. The owners had already made their loot.

Not only that, but it's a bad business when what 36% of Americans are obese and another 30% are overweight but not obese a huge junk food company can't stay in business.:lol

gigantes 11-16-2012 12:46 PM

Re: R.I.P. Hostess bakery
 
Quote:

Originally Posted by Droid101
The $700 million in debt is what killed Hostess. Their hedge fund managers hollowed out the company, and used the cash to purchase their next victim. When Hostess couldn't make their loan payment, it was up to the employees to pony up the difference. The owners had already made their loot.

Any idea what made Hostess prey to that in the first place? Can we expect the same thing to happen to more high-profile companys?

Droid101 11-16-2012 01:00 PM

Re: R.I.P. Hostess bakery
 
Quote:

Originally Posted by gigantes
Any idea what made Hostess prey to that in the first place? Can we expect the same thing to happen to more high-profile companys?

This is from Wikipedia, so grain of salt and all that:

When extended-shelf-life enzymes were developed for bread, the hope was to convert the system of many small inefficient bakeries into an efficient network of a relatively few giant bakeries like their snack cakes operation. However, the recipe using the new enzymes caused the bread to have a different taste and texture,[10] and other market forces like a resurrection of the Atkins diet and competitor Krispy Kreme doughnuts affected pricing and sales volume.
Quote:

2004 Bankruptcy

On September 22, 2004, Interstate Bakeries filed for Chapter 11 bankruptcy. The company also named a new chief executive, Tony Alvarez. Interstate Bakery's stock, which had been at one time $34/share, fell to $2.05/share as they declared bankruptcy. At the time it was the longest bankruptcy in U.S. history. During bankruptcy, Interstate fought a 2007 bid from Mexican baked goods giant Grupo Bimbo and Ron Burkle of the Yucaipa Companies. [11]

With the leadership of Craig Jung, the company emerged from bankruptcy as a private company on February 3, 2009.[12] The plan included a 50 percent equity stake by Ripplewood Holdings and lines/loans by General Electric Capital and GE Capital Markets, Silver Point Finance and Monarch Master Funding. Interstate's union workers made contract concessions in exchange for equity.[13]

During the 2004-2009 bankruptcy period, Interstate closed nine of its 54 bakeries and more than 300 outlet stores. Interstate's work force declined from 32,000 to 22,000 employees. The company also dropped some regional brands and operating agreements, such as the agreement to produce Sunbeam Bread for the northeastern U.S. (now produced by LePage Bakeries of Auburn, Maine)..[13]

gigantes 11-16-2012 01:10 PM

Re: R.I.P. Hostess bakery
 
doh... you sounded like such a financial guru in the first post. :P

Quote:

However, the recipe using the new enzymes caused the bread to have a different taste and texture,[10] and other market forces like a resurrection of the Atkins diet and competitor Krispy Kreme doughnuts affected pricing and sales volume.
still sounds kind of strange, like rose was saying. i mean, atkins? that's popular but still not much bigger than a fringe diet. krispy kreme? seems like a fairly different niche. i mean, having the urge for a twinkie or for some kruellers is a very different thing. enzyme and yeast problems...? they've had plenty of time to work that out and fine-tune the product.

eliteballer 11-16-2012 01:10 PM

Re: R.I.P. Hostess bakery
 
When twinkies were first made in the 60's or whatever, they were made with real ingredients like eggs, butter etc. Now they use chemicals and stabilizers to extend the shelf life. Among it's ingredients are products from petroleum. Yes...petroleum.

Wally450 11-16-2012 01:13 PM

Re: R.I.P. Hostess bakery
 
My Devil Dogs and Hostess cupcakes, noooo!!! :cry:


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