Maker of Twinkies and Hostess asks to Liquidate
November 16, 2012 4:11 pm at 4:11 pm #520302
rusParticipantLogin to Send PM
More bad journalism, they’re saying Twinkies and Wonder Bread are going away. Better sources say those brands will be sold.
The fate of the company’s brands remains uncertain, set to be decided by a bankruptcy court auction run by Hostess’s investment bankers, or perhaps determined by a group of liquidators. Mr. Rayburn has said he is unsure if all of the company’s brands—there are about 30, from Drake’s to Ding Dongs—will sell or how much they might fetch.
On the one hand, the names have decades of brand equity, and there is “pretty significant demand” for the products, according to Mr. Rayburn. Hostess has revenue of about $2 billion annually. But a competitor would have to ramp up production if it took on the Twinkies or Ding Dong brands and give up valuable shelf space already devoted to its own goods, Mr. Rayburn noted.
Adam Hanft, a branding strategist behind Hanft Projects, sees the potential for new life in the liquidation of the decades-old company. A fresh owner of the intellectual property, which includes everything from names to recipes to graphics, could revitalize the Hostess brands, which Mr. Hanft sees as weakened but not lacking potential. He envisioned new flavors, limited-edition Twinkies, products co-branded with independent music groups and the potential for an international reach.
“Its nutritional emptiness in the right hands could be its core strength,” he said, explaining that a buyer that embraces the brand’s “kitschy,” “deliciously retro” feel could be rewarded with a hipster following. He foresees a potentially diverse crowd of bidders for the property.
“It’s the kind of iconic brand that might attract people who might not otherwise be interested in owning a consumer good,” Mr. Hanft said.November 16, 2012 4:23 pm at 4:23 pm #520303
I miss Zombie Walker.
He’s still around from time to time…November 16, 2012 4:26 pm at 4:26 pm #520304November 16, 2012 4:28 pm at 4:28 pm #520305
Can’t they just make the Cupcakes and Twinkies in China?
But they wouldn’t be fresh when they arrived in the States!
Oh, wait…November 16, 2012 4:43 pm at 4:43 pm #520306
ricospazParticipantLogin to Send PM
He’s still around from time to time…
Zombies don’t need to know the time!November 16, 2012 4:48 pm at 4:48 pm #520307
groundrulesParticipantLogin to Send PM
it’s always dinner time.November 16, 2012 5:23 pm at 5:23 pm #520308
Zombies don’t need to know the time!
Rigor mortis makes it hard to remove accessories.November 16, 2012 5:28 pm at 5:28 pm #520309
MRipleyParticipantLogin to Send PM
But they wouldn’t be fresh when they arrived in the States!
Exactly!November 16, 2012 5:34 pm at 5:34 pm #520310
PatchMemberLogin to Send PM
They’ll get scooped up cheap and we can still have our diabetes. I’ve always wanted to be a fly on the wall when these unions who spend months telling the membership to “hang tough … company’s just bluffing” have to face their newly unemployed charges.
Of course the union reps job is never on the line, so its easy for him to be aloof in situations like this.
On NPR I heard one worker say that he wouldn’t be able to live with 10% pay cut, and I couldn’t help but wonder if he thought how it will be to live with an 100% paycut.
I can’t imagine that the workers are so highly skilled that they are being hounded by head hunters for new jobs…November 17, 2012 6:27 pm at 6:27 pm #520311
Alex SilbajorisParticipantLogin to Send PM
No more creampie for Spongebob.November 17, 2012 6:38 pm at 6:38 pm #520312
lifeontwowheelsMemberLogin to Send PM
Wonder how much a box would sell on eBay?November 17, 2012 10:36 pm at 10:36 pm #520313
myliftkkParticipantLogin to Send PM
I think the saddest loss is eventually they’ll be no more fun jokes using the double entendres for which many of Hostress’ best brands are known for.November 18, 2012 3:41 am at 3:41 am #520314
rosebushMemberLogin to Send PM
I remember reading a really good book about Charlie Manson, and a memorable bit from one of his girl disciples (when she first met him) being: ‘he pulled up in an old delivery van and gave me a Twinkie and then boy did he take me on some wild ride.’ That’s pretty interesting versatility for a mere baked good..November 19, 2012 2:16 am at 2:16 am #520315
NewsKeymasterLogin to Send PM
Twinkies Likely to Survive Sale of Hostess
By Associated PressNov. 18, 20120
Twinkie lovers, relax. The tasty cream-filled golden spongecakes are likely to survive, even though their maker will be sold in bankruptcy court. Hostess Brands Inc., baker of Wonder Bread as well as Twinkies, Ding Dongs and Ho Ho’s, will be in a New York bankruptcy courtroom Monday to start the process of selling itself.
READ MORE: http://newsfeed.time.com/2012/11/18/twinkies-likely-to-survive-sale-of-hostess/November 19, 2012 3:03 am at 3:03 am #520316
geoyuiParticipantLogin to Send PM
Here’s a rundown written in July on Hostess’ financial situation. I’ve been disconnected over this past weekend, but my newsfeed seemed to indicate the union was getting the full blame for Hostess’ bankruptcy. While the union was part of the problem, they were not the full reason (and they tried to be part of the solution).
Hostess was able to exit bankruptcy in 2009 for three reasons. The first was Ripplewood’s equity infusion of $130 million in return for control of the company (it currently owns about two-thirds of the equity). [b]The second reason: substantial concessions by the two big unions. Annual labor cost savings to the company were about $110 million; thousands of union members lost their jobs.[/b] The third reason: Lenders agreed to stay in the game rather than drive Hostess into liquidation and take whatever pieces were left. The key lenders were Silver Point and Monarch. Both are hedge funds that specialize in investing in distressed companies — whether you call them saviors or vultures depends on whether you’re getting fed or getting eaten.