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GM is making money, perhaps you're onto something there...
General Motors tuned in to Government Motors. Maybe Hostess wants the same deal?
GM is making money, perhaps you're onto something there...
Not going to happen. No one gives a if Hostess goes s up. Those workers will all get free phones and free healthcare, and they will cause the makers of Lipitor to have to ramp up production.
I was hoping they would jump into the fried-oreo bandwagon, but didn't happen.
mmm fried oreos rolled in sprinkles and dipped in chocolate with Rocky Road ice cream and a bucket of lard.
Hence, the blue...
I don't take anything you say seriously tbh.
Ironic that you're implicitly making the case for unions...
Anyway... these bag executives were paying themseves like oil barrons and planning to close plants anyway. Liquidating now and using the unions as a scapegoat to make themselves look less bad was probably the real motivation. The company was going down anyway. It had been taken over by private equity vulture capitalists who loaded it up with $860 million dollars of debt.
It's not a win for the CEO who was scheduled to make millions a year either, is it?
Before you go blaming the union for Hostess' demise, look at the facts.
In 1995 a company called International Bakeries, which was essentially a vulture capital arm of a computer company called Data Processing Financial and General Corporation, went on a massive spending spree. They not only bought Hostess but the San Francisco French Bread Company, John J. Nissen Baking Company, Drake's, My Bread Company, and tons of other companies.
They did this by borrowing like bat crazy and eventually defaulted on their loans, leading to bankruptcy in 2004.
In 2009 they emerged from bankruptcy by BORROWING MORE ING MONEY. They borrowed from Ripplewood Holdings, Silver Point, Monarch, and GE Capital. All these loans caused more payments and more interest accruing, leading to more and more debt. It was this debt that caused their collapse.
If it hadn't been for easy credit, merger mania, leveraged buyouts, and greedy conglomerates whose philosophy was "if you can't beat them buy them out," then all the little brands (including Hostess) that this group of predators bought with borrowed money might still be small and innovative enough to survive financial hard times with little or no debt of their own.
So always remember: it wasn't the unions that killed the Twinkie, it was the modern vulture capitalist culture.
It just is coincidence that Hostess was unable to fill orders, and not make financial commitments. The strike had nothing to do with that, right?
According to Wild Cobra and Random Guy just under two billion years the Twinkies should grow legs and become a human 25 Million years later.
Care to predict when you will complete that feat?
^ Gregory joined the company with a $100,000/month salary. This is a company that was already deep in the red.
This is another problem in Corporate America... rewarding abject failure with top dollars.
Yes, I understand that is your perception. Your typical "blame the rich" knee-jerk reaction. Do you realize how many CEO's they fired and hired trying to get back in the black? If anything, they should have found a better one that asked for a larger salary.
Just how is that $1.2 million annual salary going to make a difference for a company with 18,500 employees?
Is it possible that such talent is next to impossible to find at a lower salary? It would be like asking you to work for $8/hr for your job skills.
Incredibly fishy story. 30% of 18500 workers is not irreplaceable. Incredibly mismanaged debt ridden company and naturally the CEO doesn't share in the pain.
The six CEO's they went through were all richly rewarded for their incompetence.
Where, oh where, have I heard other stories like this...
I'm certainly blaming incompetence rewarding incompetence. They don't have to be "rich".
You don't need to pay a guy $1.2 million a year to send the company into liquidation...
Exactly. Upper management never felt the pinch.
http://www.ebay.com/sch/i.html?_saca...inkies&_sop=16
Get them while they're still 50 dollars a box!
Classic P/E scam.
Flipped thru several p/e outfits, each one extracting wealth (not "makers"), until the company is bankrupt, then the 1% and Repubs blame it all on the (unionized) workers, slandered as "takers".
You'd take it directly in your butthole from a 1%'r if you had the opportunity. That much is clear.
It seems they are both to blame. drivers not being able to deliver bread and twinkies is unproductive and definitely not cost efficient. The management should have never agreed to that. Downsizing should not be the first cost cutting process. It should be the last.
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