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TELL US: Is the Possible Death of the Ding-Dong the End of an Era?

Reports are that Hostess is starting to close down after a labor dispute.

 

Devil Dogs. Twinkies. Hostess Cupcakes. Wonder Bread. Ding-dongs.

They could be gone forever, with reports that Hostess Brands, Inc., said today that it will sell off or close down its 82-year old business. Done in, says the CEO, by labor union action.

Hostess filed for Chapter 11 bankruptcy protection in January.

The company has been challenged by not only by snarly labor relations, and a national strike by its second-largest labor union, but also, according to the Wall Street Journal, by consumers switching to healthier foods and high ingredient costs. 

But the Journal says that Hostess has threatened liquidation before, and not followed through. 

Tell us what you think of the possible end of Hostess and Drakes Cakes in the comments section.

Related Topics: Devil Dogs, Hostess, and Twinkies

Jenn Luke

6:36 am on Saturday, November 17, 2012

I think that people have become more health conscious over the years and are not purchasing things like Twinkies and Devil Dogs. I know I have never bought these for my kids. You know there's something wrong with a food when it doesn't decompose for almost a decade!

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Barbara Andrulonis

6:59 am on Saturday, November 17, 2012

Sad to think of the people who will be out of jobs because of this.

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paula from Westwood

7:19 am on Saturday, November 17, 2012

I would like to take over the company and re-invent the product! The jobs would be saved and the product would be healthier. People are still going to eat snack food for a treat and I personally prefer backed goods to candy. I fondly remember the field trip when I was in Elementary School in Dedham - Dexter (now closed) - where we went on a tour of the factory. It was a great trip!!!!

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Deborah Strafuss

9:55 am on Monday, November 19, 2012

My vote is with you. Companies who change with the times and adapt to their markets survive and thrive!

Marcy

8:14 am on Saturday, November 17, 2012

Yes people have become more "health" conscious but for god sake! It's a darn Twinkie !!!!!! It is awful to know the labor unions are so out of touch with what is right that they force these companies like hostess out of business and what do they do for the thousands of employees left without jobs in this ridiculous economy ? Absolutely nothing! Besides we should be allowed to decide for our selves I we want to eat that devil dog.....Twinkie....ding dong if we so choose to!!!!!

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Jim Calarese

8:45 am on Saturday, November 17, 2012

Well Marcy, you can bet that Hostess will sell the brand name to a foreign company, probably in China, and Twinkies will show up on our shores again but without any FDA safeguards in place.

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Cobber

1:02 pm on Sunday, November 18, 2012

Marcy- Quoting from a Forbes.com article:
Hostess has been sold at least three times since the 1980s, racking up debt and shedding profitable assets along the way with each successive merger. The company filed for bankruptcy in 2004, and again in 2011. Hostess Brands’ management gave themselves several raises, all the while complaining that the workers who actually produced the products that made the firm what money it did earn were grossly overpaid relative to the company’s increasingly dismal financial position. http://www.forbes.com/sites/helaineolen/2012/11/16/who-killed-hostess-brands-and-twinkies So, management was to blame for the collapse in view of their misdeeds and faiures to adjust to the market.

Dog

8:27 am on Saturday, November 17, 2012

Going for $75 a box on EBay

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Babe

8:52 am on Saturday, November 17, 2012

You are right Jim, Another victory for the unions. China will be sending us Twinkees soon. Isn't this what happened to most of our manufacturing industry??

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Jim Calarese

9:07 am on Saturday, November 17, 2012

I think it is tragic, Abby. That's 18K jobs down the tubes. There could have been compromises made by both sides. Hostess could have made a better (more healthy) product and streamlined their operation and the unions could quit complaining that having a job with benefits is unfair to the workers.

Rich A

9:09 am on Saturday, November 17, 2012

A business analyst I heard on the radio last night said that Hostess was already in a "death spiral" due to lack of innovation and inability to meet current consumer demands. Blaming this entirely on the unions is asinine. Yes, they bear some responsibility as well, but, as usual, the problem is much more complex than the talking heads on Fox News would have us believe.

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Abby

9:13 am on Saturday, November 17, 2012

Thank you Rich. We all needed that info, seriously.

Abby

9:12 am on Saturday, November 17, 2012

Nobody died. It is NOT tragic. I am all for strong unions and I am sorry for those about to lose their jobs.

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Jim Calarese

9:33 am on Saturday, November 17, 2012

I'm not going to belabor this thread any further, but as I see it there is one less American employer, 18k folks without a job and going on unemployment to be paid with money we don't have, lost tax revenue, everyone blaming everyone else, tempers flaring, the holidays upon us and that means the suicide rates will increase. Kind of tragic to me.

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Myd Nevins

10:02 am on Saturday, November 17, 2012

I have to agree with Jim and Marcy. There's a difference between being strong and being a bully. Unions, unfortunately, seem to be stepping over that line more and more in this country. A strong union isn't much help to their people if there are no companies able to financially to employ their workers.

Add in that its the death of what is essentially an American icon and its a horrible situation if they do end up closing.

Joanne Kelly

10:00 am on Saturday, November 17, 2012

I am all for strong unions too but what was the issue(s) on which neither side would compromise? Having a job and, in the case of the owners, a business is better than having nothing. Why was the option of turning Hostess into an employee-owned company in majority stock not explored? No better motivation than your own financial success/failure based on employer's success/failure.

Life is about balance - you can be as health-conscious as you like but absolute abstainence from Twinkies & Devil Dogs is cruel, unnecessary self-deprivation. What's next? Eradicating ice cream, candy and every other sensory-delight to the taste buds?

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Ray Fellows

10:22 am on Saturday, November 17, 2012

18K jobs? Those were union jobs. It was less about declining sales and more about cost. They told the union this would happen but they still voted to strike. Now they see the consequences of their actions, they are all out of a job. But the workers wont blame the union, they will blame the greedy "1 percenter" that owns the company. It was their job to "take care" of these workers not to make money!

One day we will wake up and see the light, obviously that day is NOT today! Maybe Obama will use our tax dollars to bail these guys out too. Santa Claus is alive and well in the white house. Of course he's charging everything on the taxpayers credit card but who cares, he's not paying the bill!

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unclkebuck

11:40 am on Saturday, November 17, 2012

Seems that the unions really screwed the pooch as well as thier members on this one. The company was already in bankcruptcy and there's no way they could grant the concessions that were being sought.
Oh well, maybe someone like Bain Capital will now step in and re-open (some) of these factories (non-union of course). Perhaps the cost to us consumers will also be reduced as a result of all this as well.

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Neil Licht

12:38 pm on Saturday, November 17, 2012

Its the end of an era but only for us 50 plus people. Our kids don't buy the Hostess products and frankly, Hostess stopped marketing to the "newer" generation. Now we have energy bars, health snacks, etc so the old junk food is not appealing to our newer parental generations nor their kids at home, in school, in college and in general.

Companies do die off when the market they aimed at shrinks and when perceived better alternatives are aimed at the markets they used to dominate.

BTW, the workers knew Hostess was going bust, were told by management that it was so bad that any glitch in supplying what little market they had would kill the company. They were told many times that the company would have to layoff any striking workers because it could not afford to hang in as is only surviving by filling dwindling re-orders, not new and growing orders.

The workers struck and the company closed their plants as promissed. It was the final blow that pushed Hostess into bankruptcy.

Not every management/owner team is the enemy. Some actually do see keeping people employed as part of their mission, not just profits. Workers must learn to try and see that point before deciding to strike. Neil Licht

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Myd Nevins

7:42 pm on Saturday, November 17, 2012

I disagree only in that even us in our thirties still enjoy the products and have fond memories of growing up with commercials and ads for Twinkie the Kid and Fruitpie the Magician.

Sheryl Pearson

1:10 pm on Saturday, November 17, 2012

I knew there was something wrong when they closed down the Wonder bread store in Oklahoma City three years ago.

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Kerry Najarian

2:02 pm on Saturday, November 17, 2012

There are two sides to every story -
(this is from thinkprogress.org)
Today, Hostess Brands inc. — the company famed for its sickly sweet desert snacks like Twinkies and Sno Balls — announced they’d be shuttering after more than eighty years of production.

But while headlines have been quick to blame unions for the downfall of the company there’s actually more to the story: While the company was filing for bankruptcy, for the second time, earlier this year, it actually tripled its CEO’s pay, and increased other executives’ compensation by as much as 80 percent.
http://thinkprogress.org/economy/2012/11/16

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David Nolta

9:26 pm on Saturday, November 17, 2012

Thank you, Kerry. People who vilify "the unions" conveniently forget that the unions ARE the workers--not some separate corrupt behemoth, but the everyday people who work in the factories and the bakeries such as this. And you cannot convince working people to accept pay cuts when the supervisors continue to make out like bandits. And by the way, Hostess products already had a reputation for being notoriously unhealthy forty years ago--their IMAGE and their PRODUCTS should have changed, not their workers's expectations of decent wages. Next thing you know, we'll be having nostalgic tributes to The Marlborough Man...

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R. Thomson

5:34 am on Monday, November 19, 2012

My grandfather worked most of his life and retired from the plant in Framingham until they closed the plant. When I read this post I am glad that he did not have to go through what this employee has. It's very sad.
Daily Kos: Inside the Hostess Bankery
www.dailykos.com

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Natalie

10:36 am on Monday, November 19, 2012

I do feel bad for workers who will be unemployed but glad to see that people are becoming aware of side effects of eating junk food.

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Ed

4:47 pm on Monday, November 19, 2012

And, of course, "Ghostbusters" needs to be re-edited now.

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