Hostess' Bain-style tactics

Posted in the Minneapolis Forum

Amused Slew

Seattle, WA

#1 Nov 21, 2012
Hostess' Mismanagement Timeline

While Hostess Brands is trying to scapegoat the workers and members of the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM), the real cause of the company's collapse can be traced back to its crony capitalism and consistently poor management.

Hostess Brands is in bankruptcy for the second time in eight years. Since the first bankruptcy in 2004, BCTGM members across the country have taken dramatic wage and benefit concessions and watched as 21 Hostess plants were shut down and thousands of jobs were lost. At the time of the first bankruptcy, Hostess workers were assured by management that money saved via concessions and plant closings would help make the company stronger, more vibrant and more competitive.

BCTGM President Frank Hurt said:

Hostess’s announcement that it is liquidating the company is a deep disappointment for all of our Hostess members. While Hostess management wants to blame our members for the demise of the company, the truth is that had it not been for the valiant efforts of our members over the last eight years, including accepting significant wage and benefit concessions after the first bankruptcy, this company would have gone out of business long ago.

Hostess failed because its six management teams over the last eight years were unable to make it a profitable, successful business enterprise. Despite a commitment from the company after the first bankruptcy that the resources derived from the workers’ concessions would be plowed back into the company, this never materialized. Management refused to invest in modernizing its bakeries or devote necessary resources to advertising and marketing, product development and new technology. Business plan after business plan failed, leaving the company ever deeper in debt.

Six CEOs in 10 years have failed to turn the company around. Since 2001, plants were closed and thousands of workers laid off, yet the company still isn't viable. Now, 18,000 workers will lose their jobs.

These new infographics show the pattern of mismanagement over the years and the amount of debt Hostess Brands owes to lease obligations, trade creditors, accrued workers' compensation liabilities and more.

Please share them to spread the word about Hostess' Bain-style tactics.
Amused Slew

Seattle, WA

#2 Nov 21, 2012
When 18,000 Hostess employees went on strike for better wages last week, many hysterically rang the death knells of the Twinkie and other popular Hostess desserts. Outwardly the Hostess balance sheet may show a simple failed business model that could not adapt to changing consumer needs. However, the true cause of the financial collapse is largely due to gross mismanagement and corporate greed.

As workers were asked to take an unconscionable 30 percent cut to wages and benefits, Hostess CEO Greg Rayburn approved a $1.75 million set of bonuses this year for his cadre of corporate cronies. Were it not for union representation, the years of corporate abuse and mismanagement would have likely sunk the Hostess ship years earlier.
Fred

Minneapolis, MN

#4 Nov 25, 2012
DSM Local wrote:
Claiming the union for corporate mismanagement is stupid.
Claiming or blaming? You are not only the biggest liar on Topix, but you are the dumbest poster on Topix too. It was the union who did not accept the judge's order to impose an 8% wage reduction. The union shut down Hostess.
Amused Slew

Seattle, WA

#6 Nov 25, 2012
Fred wrote:
<quoted text>
Claiming or blaming? You are not only the biggest liar on Topix, but you are the dumbest poster on Topix too. It was the union who did not accept the judge's order to impose an 8% wage reduction. The union shut down Hostess.
The union can't shut down the company, management has to. If the debt management put around Hostess' neck wasn't so onerous, they'd still be giving out huge management bonuses and pay raises, til is was... Follow the money, soapy dope, NOT the pay cuts upon pay cuts for the ACTUAL PRODUCERS !!!! LMAOROTFU~! You could be a moron for Halloween, COME AS YOU ARE ~
Fred

Minneapolis, MN

#7 Nov 25, 2012
Amused Slew wrote:
<quoted text>The union can't shut down the company, management has to. If the debt management put around Hostess' neck wasn't so onerous, they'd still be giving out huge management bonuses and pay raises, til is was... Follow the money, soapy dope, NOT the pay cuts upon pay cuts for the ACTUAL PRODUCERS !!!! LMAOROTFU~! You could be a moron for Halloween, COME AS YOU ARE ~
Union members is the smarterest peepole on earth. 18,000 people out of work now thanks to the union.
Amused Slew

Seattle, WA

#8 Nov 25, 2012
The union can't shut down the company, management has to. If the debt management put around Hostess' neck wasn't so onerous, they'd still be giving out huge management bonuses and pay raises, til is was... Follow the money, soapy dope, NOT the pay cuts upon pay cuts for the ACTUAL PRODUCERS !!!! LMAOROTFU~! You could be a moron for Halloween, COME AS YOU ARE ~
Amused Slew

United States

#9 Nov 25, 2012
Simply put Hostess product sales are not large enough to justify the companies existance.

Their is ONE simple reason why Hostess sales have crashed: Libertards lead by Michelle Obama's attack on unhealthy foods served in public schools.

http://www.nytimes.com/2009/10/03/nyregion/03...

Soooo, Unions can look into their elected leaders for the cause of the Hostess Corp failure. I mean if you cut off sales outlets for a companies products the company goes broke!

Simple!
Amused Slew

Seattle, WA

#10 Nov 25, 2012
Funny, you excuse poor management, huge management raises, and pretend all the other bakeries are OUT OF BUSINESS, under the same "logic" ??

Didn't RawMoney visit a bakery and insult the cookies, moron ??? LMAOROTFU~!

Yeah, the government "OWES" it to the business to keep American's unhealthy diet in place, so THEY can continue to pay bad management UNABLE to innovate.
Amused Slew

United States

#11 Nov 25, 2012
The Government lead by President Obama kept GM alive so THEY can continue to pay bad management UNABLE to innovate.

Oh sure blame Romney, or Bush..

Up yours!!
Amused Slew

Seattle, WA

#12 Nov 25, 2012
Actually, bushwhacker started the GM bailout and Obama made the CEO step down... Are you a complete moron or are you so head up your butt, you cannot afford a paper ??? LMAOROTFu~! LMAOROTFU~!
Amused Slew

Seattle, WA

#13 Nov 25, 2012
General Motors was financially vulnerable before the automotive industry crisis of 2008-2009. In 2005 the company posted a loss of US$10.6 billion. In 2006, its attempts to obtain U.S. government financing to support its pension liabilities and also to form commercial alliances with Nissan and Renault failed. For fiscal year 2007, GM's losses for the year were US$38.7 billion, and sales for the following year dropped by 45%.

On November 7, 2008 General Motors reported it had projected it would run out of cash around mid-2009 without a combination of government funding, a merger, or sales of assets. Ten days later General Motors representatives, along with executives from Ford and Chrysler testified about their need for financial aid at a Congressional hearing in Washington D.C. All three companies were unsuccessful in their attempts to obtain legislation to authorize U.S. government aid, and were invited to draft a new action plan for the sustainability of the industry. On December 2, 2008, General Motors submitted its "Restructuring Plan for Long-Term Viability" to the Senate Banking Committee and House of Representatives Financial Services Committee. Congress declined to act, but in December 2008 the Bush administration provided a "bridge loan" to General Motors with the requirement of a revised business plan...Wiki BYTCH ~! LMAOROTFU~!
Amused Slew

Seattle, WA

#14 Nov 25, 2012
Amused Slew wrote:
The Government lead by President Obama kept GM alive so THEY can continue to pay bad management UNABLE to innovate.
Oh sure blame Romney, or Bush..
Up yours!!
You forgot the unhealthy diet, which explains the current crop on innovative gasoline saving products/hybrids currently reaching the market, MORON ~!! You say potato and I say the actual question was related to losing the election, dipstick...

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