Hostess, maker of America’s beloved Twinkies, has brought out the nuclear option. If enough of its workers don’t return by 5PM on November 15, 2012 (that’s tomorrow), the company will liquidate itself.
The company declared Chapter 11 bankruptcy back in January, and after handing down bankruptcy court-approved pay cuts to its workers, the employees went on strike last week. This is basically the equivalent of saying “if you don’t eat my donut, I’m gonna shoot myself in the face!”
The problem here seems to be a lack of planned obsolescence. When a Twinkie lasts forever, why would you ever buy another one? The full press release is below:
|Hostess to liquidate if strikes impede normal operations past 5 pm EST, Thursday|
Hostess Brands Inc. announced today that it will file a motion with the U.S. Bankruptcy Court on Friday to liquidate the entire Company if enough striking employees do not return to work by 5 p.m., EST, Thursday to enable the Company to resume normal operations. The strikes were called on November 9 by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union (BCTGM).
“We simply do not have the financial resources to survive an ongoing national strike,” said Gregory F. Rayburn, the Company’s Chairman and CEO. “Therefore, if sufficient employees do not return to work by 5 p.m., EST, on Thursday to restore normal operations, we will be forced to immediately move to liquidate the entire Company, which will result in the loss of nearly 18,000 jobs. It is now up to Hostess’ BCTGM represented employees and Frank Hurt, their international president, to decide if they want to call off the strike and save this Company, or cause massive financial harm to thousands of employees and their families.”
Hostess has done everything in its power to pursue a reorganization of its business as a going concern, including spending the better part of 18 months negotiating with its key constituents to obtain a consensual agreement. As previously disclosed, the Company has obtained the support of its largest union, the International Brotherhood of Teamsters, and its lenders. With the support of the BCTGM, Hostess believes it would successfully reorganize.
If sufficient employees do not return to work by the deadline to restore normal operations, the liquidation process will unfold as follows:
Additional information about the Company’s labor issues can be found atwww.hostessstrike.info.