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| Wanna bake? | |
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| Tweet Topic Started: Nov 18 2012, 08:07 AM (517 Views) | |
| Jolly | Nov 18 2012, 08:07 AM Post #1 |
Geaux Tigers!
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In a really big way? Louisiana's Office of Economic Development is willing to give incentives to anybody willing to purchase and operate any or all of the old Hostess bakeries within the state. |
| The main obstacle to a stable and just world order is the United States.- George Soros | |
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| Horace | Nov 18 2012, 08:15 AM Post #2 |
HOLY CARP!!!
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There were no Twinkies at the store last night.  I'm not sure why we bother bribing politicians if they're just going to let this sort of thing happen. |
| As a good person, I implore you to do as I, a good person, do. Be good. Do NOT be bad. If you see bad, end bad. End it in yourself, and end it in others. By any means necessary, the good must conquer the bad. Good people know this. Do you know this? Are you good? | |
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| JBryan | Nov 18 2012, 08:21 AM Post #3 |
I am the grey one
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If there is a market for the Twinkie there will be a Twinkie. |
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"Any man who would make an X rated movie should be forced to take his daughter to see it". - John Wayne There is a line we cross when we go from "I will believe it when I see it" to "I will see it when I believe it". Henry II: I marvel at you after all these years. Still like a democratic drawbridge: going down for everybody. Eleanor: At my age there's not much traffic anymore. From The Lion in Winter. | |
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| Horace | Nov 18 2012, 08:25 AM Post #4 |
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HOLY CARP!!!
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This'll be like the New Coke thing, Twinkies are gonna sell like hotcakes now. |
| As a good person, I implore you to do as I, a good person, do. Be good. Do NOT be bad. If you see bad, end bad. End it in yourself, and end it in others. By any means necessary, the good must conquer the bad. Good people know this. Do you know this? Are you good? | |
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| JBryan | Nov 18 2012, 08:43 AM Post #5 |
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I am the grey one
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First they have to introduce the whole wheat Twinkie. Then they can bring back the real thing. |
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"Any man who would make an X rated movie should be forced to take his daughter to see it". - John Wayne There is a line we cross when we go from "I will believe it when I see it" to "I will see it when I believe it". Henry II: I marvel at you after all these years. Still like a democratic drawbridge: going down for everybody. Eleanor: At my age there's not much traffic anymore. From The Lion in Winter. | |
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| Larry | Nov 18 2012, 08:46 AM Post #6 |
Mmmmmmm, pie!
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I would have to be guaranteed a nonunion shop.. |
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Of the Pokatwat Tribe | |
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| Steve Miller | Nov 18 2012, 08:51 AM Post #7 |
Bull-Carp
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Are the necessary chemicals available locally? |
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Wag more Bark less | |
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| Mikhailoh | Nov 18 2012, 08:54 AM Post #8 |
If you want trouble, find yourself a redhead
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Brenda - here's a chance to get some serious Hobart. |
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Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball | |
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| Jolly | Nov 18 2012, 08:58 AM Post #9 |
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Geaux Tigers!
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Chemicals? I think Louisiana is the #2 chemical manufacturing state. But let us not just dwell on twinkies...lots of bread needs to be baked...I think all of the Hostess bakeries down here were profitable. Oh, and Louisiana is a Right-To-Work state... |
| The main obstacle to a stable and just world order is the United States.- George Soros | |
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| brenda | Nov 18 2012, 09:12 AM Post #10 |
..............
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 That's too much, even for me.
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“Weeds are flowers, too, once you get to know them.” ~A.A. Milne | |
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| Steve Miller | Nov 18 2012, 09:23 AM Post #11 |
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Bull-Carp
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Yes, of course - and I should have remembered that. Should make Louisiana the ideal place to make Twinkies. OTOH even a right to work state is going to have trouble competing in the manufacture of Twinkies. They're shelf-stable in a big way - enough so that you can manufacture them nearly anywhere and they'll still be edible when they hit the stores. Make 'em in Mexico and get 'em for half what they cost here. Make 'em in Vietnam and get 'em for less than that. The workaround of course, is to convince
The bakeries were nearly all profitable from what I hear. Even with the union - it's an automated process these days and it doesn't require a whole lot of employees to run one of their factories. They just weren't profitable enough to survive after the venture capital guys loaded the company down with so much debt. It doesn't help that this has been planned for years and the factories have all been allowed to deteriorate. Does Hostess still bake bread in LA? They got rid of the bread operations here (Wonder, DiCarlo) during the last bankruptcy. It's all made by Bimbo now. |
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Wag more Bark less | |
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| sue | Nov 18 2012, 09:27 AM Post #12 |
HOLY CARP!!!
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 That's what I was thinking when I heard this news last night (yes, this earth shattering event has made headline news up here too) If they had taken their heads out of the sand a while back and acknowledged what was going on in the market, they should have attempted a new! improved! healthier snack. Which would have been disgusting, customers would have been outraged and they'd have begged for the original to come back. |
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| Jolly | Nov 18 2012, 12:59 PM Post #13 |
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Geaux Tigers!
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Closest one I know of still bakes bread. About 170 guys on the plant floor and 30 support staff got their pinks Friday... |
| The main obstacle to a stable and just world order is the United States.- George Soros | |
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| kenny | Nov 18 2012, 01:20 PM Post #14 |
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HOLY CARP!!!
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Finally, Americans will all be thin again. |
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| Mark | Nov 18 2012, 01:24 PM Post #15 |
HOLY CARP!!!
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Great! Government Twinkies! You can eat them in your Government Motors vehicle! |
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___.___ (_]===* o 0 When I see an adult on a bicycle, I do not despair for the future of the human race. H.G. Wells | |
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| ivorythumper | Nov 18 2012, 01:28 PM Post #16 |
I am so adjective that I verb nouns!
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Seems like a great opportunity for the workers to form their own cooperative. |
| The dogma lives loudly within me. | |
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| ivorythumper | Nov 18 2012, 01:31 PM Post #17 |
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I am so adjective that I verb nouns!
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Someone actually has to buy that debt, Steve -- it's not like they loaded it down unilaterally. |
| The dogma lives loudly within me. | |
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| Steve Miller | Nov 18 2012, 02:30 PM Post #18 |
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Bull-Carp
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Not sure what you mean by this. Explain? |
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Wag more Bark less | |
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| Steve Miller | Nov 18 2012, 02:39 PM Post #19 |
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Bull-Carp
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Bread is a different business. It has to be made close to where it gets purchased because shelf life is very short. If the local plant had 170 employees then they made a whole lot of bread - enough that someone is likely to step in and pick up the slack right away. Might be at that plant, might be at another more modern plant, but is sure to happen quickly as someone is going to want to profit from the vacuum created when the Hostess plant closes. Either way the closure of that plant was inevitable. Had the union capitulated (and they voted 9 to one to strike) they may have bought another year but in the end the burden of $1 Billion in debt was going to bring the whole thing down. |
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Wag more Bark less | |
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| ivorythumper | Nov 18 2012, 03:53 PM Post #20 |
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I am so adjective that I verb nouns!
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I assume you were discussing about the leveraging up Hostess did (as I understand it to have been). Hostess had been through a previous bankruptcy, and was acquired by a private equity group with hedge fund partners to inject capital into the company. So they are now the owners. To mitigate risk, they leveraged up by taking out their equity and replacing it with loans from banks, etc. They pay that debt with proceeds from sales over time. so someone (say, a bank) had to buy that debt, which is what a loan is. That, anyway, is my understanding of what Hostess did -- at some point someone should have done due diligence about assets and liabilities, including the condition of the factories, the market for crap junk food, the obligations to legacy pensions, etc. It seems like if they are $860MM in debt with loans, the couple of million in BoD compensation is not what the bankruptcy is all about, and they certainly seem like small time profiteers, esp given that Rayburn reduced the BoD compensation to $1 per year. But please explain, what is the owners' advantage in taking a company that is operational and destroying it but just loading it down with debt? Some short term gain, or fraud? Even cold hearted capitalists should realize that they can make more money with a successful product than destroying the brand. There are a lot of buyers for great companies -- a few years ago Hostess was offered $530MM by Gruppo Bimbo. It's now thought worth about $135MM. Are these greedy capitalists that inept? Here's the history, fwiw. |
| The dogma lives loudly within me. | |
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| Steve Miller | Nov 18 2012, 04:51 PM Post #21 |
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Bull-Carp
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Maybe they are. Good article here: http://management.fortune.cnn.com/2012/07/26/hostess-twinkies-bankrupt/ This is not the simple "union bad - management good" situation that some would make it out to be. |
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Wag more Bark less | |
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| Jolly | Nov 19 2012, 06:57 AM Post #22 |
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Geaux Tigers!
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According to some sources, Bimbo is still interested... |
| The main obstacle to a stable and just world order is the United States.- George Soros | |
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| Steve Miller | Nov 19 2012, 09:16 AM Post #23 |
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Bull-Carp
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As well they should be. Their previous offer was some $500 mil. Current estimates as to the value of the company are more like $135 mil. |
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Wag more Bark less | |
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| JBryan | Nov 19 2012, 09:30 AM Post #24 |
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I am the grey one
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So, are we going to have Bimbo Twinkies? |
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"Any man who would make an X rated movie should be forced to take his daughter to see it". - John Wayne There is a line we cross when we go from "I will believe it when I see it" to "I will see it when I believe it". Henry II: I marvel at you after all these years. Still like a democratic drawbridge: going down for everybody. Eleanor: At my age there's not much traffic anymore. From The Lion in Winter. | |
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| jon-nyc | Nov 19 2012, 01:58 PM Post #25 |
Cheers
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You say that as if you've never had a bimbo twinkie before. |
| In my defense, I was left unsupervised. | |
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8:37 AM Jul 13