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Hope: The Twinkie May Survive After All — Read How

Nov. 19, 2012 12:45pm Becket Adams

Read our original story on this topic over on TheBlaze blog.

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Theres a Chance Hostess Products Will Survive

(PAUL J. RICHARDS/AFP/Getty Images)

A crippling nationwide strike last week killed off Hostess Brands Inc., the financially struggling makers of the Twinkie. At the time of the company’s bankruptcy announcement, TheBlaze noted that there was a good chance Hostess’ products would survive, but under a different label.

Here’s how it would work:

Hostess will be in a New York bankruptcy courtroom Monday to start the process of selling itself. The company, weighed down by debt, management turmoil, and rising labor costs, decided on Friday that it no longer could make it through a conventional Chapter 11 bankruptcy restructuring. Instead, it’s asking the court for permission to sell assets and go out of business.

But with high brand recognition and $2.5 billion in revenue per year, other companies are interested in bidding for at least pieces of Hostess. Twinkies alone have brought in $68 million in revenue so far this year, which would look good to another snack-maker.

Hostess has said it has received inquiries about buying parts of the company. Companies reportedly interested in purchasing Hostess’ assets include the Thomasville, Ga.-based Flowers Foods Inc., private equity food investment firm Metropoulos & Co., and Mexico’s Grupo Bimbo, the world’s largest bread-baking firm.

So, yes, there’s a possibility that a Mexican company will purchase Hostess’ assets and create new jobs — south of the border.

“We think there’s a lot of value in the brands, and we’ll certainly be trying to maximize value, both of the brands and the physical assets,” Ignon said Sunday. He said it’s possible some of Hostess’ bakeries will never return to operation because the industry has too much bakery capacity.

“We think there’s a lot of value in the brands, and we’ll certainly be trying to maximize value, both of the brands and the physical assets,” said spokesman Lance Ignon Sunday.

Little will be decided at Monday afternoon’s hearing before Bankruptcy Judge Robert Drain, Pottow said. The judge eventually will appoint a company that specializes in liquidation to sell the assets, and the sale probably will take six months to a year to complete.

Irving, Texas-based Hostess filed for Chapter 11 bankruptcy protection in January for the second time in less than a decade. Its predecessor company, Interstate Bakeries, sought bankruptcy protection in 2004 and changed its name to Hostess after emerging in 2009.

The company said it was saddled with costs related to its unionized workforce. The company had been contributing $100 million a year in pension costs for workers; the new contract offer would’ve cut that to $25 million a year, in addition to wage cuts and a 17 percent reduction in health benefits.

Management missteps were another problem. Hostess came under fire this spring after it was revealed that nearly a dozen executives received pay hikes of up to 80 percent last year even as the company was struggling.

Then last week thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike after rejecting the company’s latest contract offer. The bakers union represents about 30 percent of the company’s workforce.

By that time, the company had reached a contract agreement with its largest union, the International Brotherhood of Teamsters, which this week urged the bakery union to hold a secret ballot on whether to continue striking. Although many bakery workers decided to cross picket lines this week, Hostess said it wasn’t enough to keep operations at normal levels.

The company filed a motion to liquidate Friday. The shuttering means the loss of about 18,500 jobs. Hostess said employees at its 33 factories were sent home and operations suspended. Its roughly 500 bakery outlet stores will stay open for several days to sell remaining products.

News of the decision caused a run on Hostess snacks at many stores around the country, and the snacks started appearing on the Internet at inflated prices.

No, seriously:

Follow Becket Adams (@BecketAdams) on Twitter

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RELATED:

The Twinkie Is Dead: Hostess to Close, 18K+ Layoffs Expected

The Associated Press contributed to this story.

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Comments (35)

nosharia
Posted on November 20, 2012 at 10:43am
Another comment says not to worry. There is still a Ding Dong and a Twinkie in the White House.

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Mossy_pump
Posted on November 19, 2012 at 8:57pm
The Mexican Twinkie will cost a 1/4 of what it does now due to wages and will still cost us the same to buy..then in a couple years the Twinkie will be made in china, costing 1/4 of what it did in Mexico and be more expensive for us to buy…there’s no happy medium but they are still delicious!

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independentvoteril
Posted on November 19, 2012 at 7:37pm
Here’s the thing I for one will NOT be missing them,, only good thing they had were the snowballs and only the marshmallow and coconut were worth eating (and all I did eat) but I can buy these toasted marshmallows with toasted coconut made in ISRAEL taste is just as good and no cake to throw away.. up side is I support Israel imports..bought a MINI pack of toasted coconut donuts last night just for the heck of it (and cause I could find them..LOL) OMG were they awful don’t know what kind of oil they are using now (haven’t had any of them for years) but they left a greasy film in my mouth like the NEW dunkin donuts oil does.. maybe in MEXICO they will make them with the old oil and they will improve in taste.. MEXICO has helped PEPSI they NOW make it with (the throwbacks) with REAL sugar.. the only kind I will drink..

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louise
Posted on November 19, 2012 at 4:24pm
This article said, “We think there’s a lot of value in the brands, and we’ll certainly be trying to maximize value, both of the brands and the physical assets,” Ignon said Sunday. He said it’s possible some of Hostess’ bakeries will never return to operation because the industry has too much bakery capacity.
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Hahahahaha……I am laughing and crying at the same time!!!!!! These guys value brand?? lol yeah tell that to the Anheuser Busch employees. And ask them how much they love Carlos Britos.

Brand means nothing anymore. Do not believe them when they tell you THAT lie.

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Isis79
Posted on November 19, 2012 at 4:12pm
America heading for $20,000,000,000,000 TRILLION in national debt commits suicide but the Twinkie survives. Go figure.

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ResistSocialism
Posted on November 19, 2012 at 3:40pm
Everything else is moving to Mexico why not Hostess. lol

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rufukinkiddinme
Posted on November 19, 2012 at 3:33pm
So hostess could sell to Grupo Bimbo? Create jobs South of the border? Outstanding! Maybe that will keep 18,500 Mexicans south of the border as well!! Probably not, who would pass up the Mexican illegal American dream? Free food, health care, education, housing.

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joey g
Posted on November 19, 2012 at 2:25pm
I don’t care…..

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- rickc34
  Posted on November 19, 2012 at 2:55pm
  Twinkies from Mexico? No thanks. I have seen workers from mexico go back to the kitchen after using the bathroom and not wash their hands here…what makes you think it is different dow there.
  
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Todd Decker
Posted on November 19, 2012 at 1:58pm
Too many executives that run companies take pay raises and big bonuses when they force layoffs, unpaid furloughs, wage cutting, etc. That is as bad as the Union thug bosses doing what they did.

Anyway, should the Mexican company get the Hostess stuff, it will be a massive win-win for the Progressive-Liberal-Democrats. Why?

1) Redistribution of the wealth from the evil US to the innocent, righteous, & wholesome Mexico.

2) 18K union members out of work can now get on the government dole, allowing them to keep a home, get fed, have a cell phone, and more. It won’t be as comfortable as when they were working, but in their survival, they’ll blame Bush, Romney, Bain Capital, and all Republicans, especially Tea Party racists, bigot, sexists, homophobes.

3) Despite the loss of 18K paying members, the Unions will still come out smelling like roses, and will make sure that even more $$$ goes to the caring, loving, and overall wonderful Democrat party. After all, this is ultimately Bush’s fault.

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- Cavallo
  Posted on November 19, 2012 at 2:17pm
  Some of what you say is true others are slightly off. The government dole only pays a fraction of what these Union workers were earning working for hostess. The media and the union workers will always support the Bolsheviks, and Hostess staying in business would be unlikely to change that. What the workers would not be doing is paying Union Dues on their monthly or two week pay check. Bimbo would see an economic benefit from the brand, depending of course the brand isn’t irreparably tarnished and they don’t overpay for a shrinking market share item.
  
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Helen Hyde
Posted on November 19, 2012 at 1:52pm
Take a 8% pay cut and keep working or take a 100% pay cut. Thats union math for you.

Why don’t we talk about how much the union bosses make regardless of whether the actual workers have any kind of job.

A business faces such a headwind trying to make/produce anything in this country. You have the EPA, FDA, TSA, IRS, DHS, stadiums full of lawyers ready to sue, unions etc. etc.

This bunch of slime in DC as well, are working overtime to make it impossible to do business in the US.
What did Ross Perot say a few years ago about that sucking sound you hear are the jobs going to China and elsewhere.
We are getting to the point that all manufacturing will be gone, and the only jobs will be to sell each other chinese made products and cut and wash each others hair. Havent figured out how to ship that job overseas yet. The govt will probably find a way to regulate that one into oblivion too.

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truthsurfer
Posted on November 19, 2012 at 1:52pm
After seeing the headline I thought this was an article about chrissy mathews at PMSNBC

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JUSTANOTHEROPINION
Posted on November 19, 2012 at 1:45pm
I don’t like Unions at all, however, it seams to me the workers had a hand in their own demise here. There is plenty of blame for both the Unions and the workers here. Now, as the old saying goes, every dark cloud has a silver lining and in this case the silver lining is, the more members put out of work the less dues are paid and the less dues paid translates into less power for the Unions. So, keep up the good work Union officials and eventually all the Union workers will be out of work, the Unions will be out of business due to no finances and then America can get back to work. So as you can see there is a silver lining.

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h20sue
Posted on November 19, 2012 at 1:35pm
Sorry, no Mexican treats for me! We have enough Latino’s in “our country” and we certainly don’t need to be buying food from them! There’s enough billionaires and millionaires in the USA to take over Hostess.
Darn shame that they are going to allow this to happen. We can’t give people jobs, but Mexico can!
What does that tell you about our finances and what’s going on.

Obama just gave Burma 170 million dollars while we are starving, losing our homes, and not able to buy health care (plus we hate Obama Care) . You really don’t want to know what I want to say about what should happen to this so called leader of the USA. Only the ignorant voted for him, and yes, that includes those morons in Bollywood. Spielberg, Streisand, Oprah, I hope you are all reading this!

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alinskythis
Posted on November 19, 2012 at 1:31pm
Hostess + Mitt Romney.

After all, it’s what he does best.

It could make up for Big Bird…. just sayin’……

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progressiveslayer
Posted on November 19, 2012 at 1:25pm
Unions doing their part in destroying jobs in America and sending them to Mexico,way to go union pigs,keep it up and before you know it we’ll all be out of work. Eventually the economy will be destroyed and all citizens can get on welfare,sounds like the diabolical plan of a skinny Marxist POS and two communist professors huh?

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- PIGSWILLNEVERFLY
  Posted on November 19, 2012 at 7:23pm
  @SLAYER – So true – look what I found – http://www.frontpagemag.com/2012/dgreenfield/bakers-union-has-8-vice-presidents-and-2-million-in-executive-salaries
  
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HKS
Posted on November 19, 2012 at 1:17pm
The Twinkie is just another example of big businesses which make themselves a target for unions and liberal governments to suck the life out of them. Like a lot of other business in this country that will fall to the same weakness, “To big to succeed” Small business will rule the marketplace. That’s why Obama is targeting the small business right now. Big business has corrupted themselves out of business on all fronts.

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VoteRightDammit
Posted on November 19, 2012 at 1:16pm
“HOPE: THE TWINKIE MAY SURVIVE AFTER ALL — READ HOW”

Can’t get much more stupid than THIS, Blaze.

The problem is NOT with the loss of the product (Twinkie), but the loss of 18,000 JOBS! And these JOBS will NOT be saved – at least, not in THIS country.

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- Cavallo
  Posted on November 19, 2012 at 1:31pm
  18,000 Union jobs. Can’t say I will weep much. Hey! Maybe the grand leader, the Obamessiah will give them a bailout and turn ownership of the company over to the Unions!
  
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- Shasta
  Posted on November 19, 2012 at 2:19pm
  18,000 jobs held by greedy self-entitled union workers. sorry, i am more concerned about the product.
  
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txn4justice
Posted on November 19, 2012 at 1:11pm
Michael Moore is getting feverish.

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BlackCrow
Posted on November 19, 2012 at 1:06pm
The local buzz around San Antonio is the Mexican bread company Bimbo is interested in purchasing the brand and trademarks. If they do they will likely move production to Mexico.

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1911CK
Posted on November 19, 2012 at 1:05pm
If the Mexican company buys twinkles, I can just see the commercial now…
“I don’t always eat junk food, but when I do, I prefer Twinkies. Stay hungry my friends”

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randy
Posted on November 19, 2012 at 1:03pm
So, yes, there’s a possibility that a Mexican company will purchase Hostess’ assets and create new jobs — south of the border.

Sorry, I won’t be buying Mexican Twinkies

Purchased one of the last remaining Hostess Twinkie Bake sets and will be making my own twinkies from now on. :)

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- dublinthewagons
  Posted on November 19, 2012 at 1:23pm
  They bought out Mrs Baird’s bakeries several years ago. w/interest free US loans, under bush.
  Redistribution of wealth. How’s it working out for ya.
  You may have to learn to say pass the Twinkies PLEASE in Spanish. I won’t……….
  
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- Cavallo
  Posted on November 19, 2012 at 1:29pm
  Just think of how much cheaper they will be if made in Mexico! Is there a Spanish word for Twinkie? Twinkos!
  
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Tex Expatriate
Posted on November 19, 2012 at 1:01pm
I once lived in a city in which Twinkies were baked. What follows is true, people. If you were a woman working at the plant, you earned advancement by providing sex to your union supervisors. Women who did not play along did not advance very rapidly, if at all. I know because I hired a women who quit the plant over those problems.

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- Cavallo
  Posted on November 19, 2012 at 1:24pm
  Unions will screw you one way or the other.
  
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- Tom K
  Posted on November 19, 2012 at 1:35pm
  @ TEX EXPATRIATE : Libs Champion Unions – Libs Champion Law Suits Against Sexual Harassers, too. The rub comes when the harassers are in the Union. If I had just lost my job due to this strike, I would hold the Union responsible and would demand lots of financial redress. Laid off workers – sue the Union for malpractice or what-ever. Sorry for those that allowed the sexual harassment to victimize them but now EVERYONE is out of a job. Always stop EVIL in its tracks and do not yeild to evil. This Union was / is a Cancer.
  
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- Cavallo
  Posted on November 19, 2012 at 2:02pm
  Likely there is a binding arbitration agreement, guess how that would go?
  
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- dosdelgados
  Posted on November 19, 2012 at 2:07pm
  Tom K – especially those workers who weren’t even union members. That’s who my heart hurts for.
  
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Tom K
Posted on November 19, 2012 at 1:00pm
Flowers Foods in Thomasville Georgia possibly buying Twinkies, that would be just great. That would preserve a great All American Product, keep jobs in America and bring some jobs to the South East U.S.A. that is struggling under the Obama Economy.

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Darmok and Jalad at Tanagra
Posted on November 19, 2012 at 12:59pm
Now all those carney’s will still have sustanence while touring fairgrounds everywhere.

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