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ehrnst

(32,640 posts)

3. And to help avoid the first bankruptcy, Labor made huge concessions

Fri Nov 16, 2012, 02:16 PM

Nov 2012

"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). 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. 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."

http://management.fortune.cnn.com/tag/gregory-rayburn/

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It wasn't the union that killed the Twinkie. It was vulture capitalism. [View all] Pab Sungenis Nov 2012 OP

but...but.... MynameisBlarney Nov 2012 #1

But the anti-Labor crowd here on DU totally ignores all of that. Ikonoklast Nov 2012 #2

Who here is anti labor? Initech Nov 2012 #4

Look here: Ikonoklast Nov 2012 #8

Tell me about it. Savannahmann Nov 2012 #9

That's what happens when both parties move so far to the right a2liberal Nov 2012 #21

I don't know why DU puts up with these scabs... backscatter712 Nov 2012 #22

So how bad do you suppose it will have to get before enough people wake up Egalitarian Thug Nov 2012 #27

no time now to look at that other thread, but amborin Nov 2012 #56

Thanks for the femrap Nov 2012 #67

The same suspects that shout down taking to the streets for any protest. nt Hotler Nov 2012 #36

Never question those better than you. Knuckle under. Take what they give you. Ikonoklast Nov 2012 #37

And here: Hugabear Nov 2012 #73

Unions helped build the middle class Waltg Nov 2012 #41

50K? More like $33K ($16/hr), to be reduced to $22K ($11/hr) HiPointDem Nov 2012 #16

Figure 'all in'; pension contributions, health care, paid vacation time, etc. Ikonoklast Nov 2012 #25

Grrrrr... fleabiscuit Nov 2012 #58

And to help avoid the first bankruptcy, Labor made huge concessions ehrnst Nov 2012 #3

And management voted themselves millions in raises this past summer Squinch Nov 2012 #34

I posted that in several threads.............. thelordofhell Nov 2012 #81

Hey! I think your point and the information you uncovered is crucial to this discussion. It's all Squinch Nov 2012 #86

What's been happening to Hostess is ruthless corporate raiding thelordofhell Nov 2012 #88

I got thru femrap Nov 2012 #68

i know i wasn't about to blame the union. barbtries Nov 2012 #5

And the list of iconic name brands continues to shrink thanks ChisolmTrailDem Nov 2012 #6

Kicked and recommended. hunter Nov 2012 #7

Thank you, and this will be distributed to my non-union friends..... a kennedy Nov 2012 #10

kr. Lots of "Democrats" are happy to have hostess go under so people won't eat HiPointDem Nov 2012 #11

Hopefully, they're not any more happier with that then they are... MrMickeysMom Nov 2012 #33

Amazing how certain posters suddenly get "concerned" about nutrition when union issues come up. n/t backscatter712 Nov 2012 #44

In this case though, another competitor can take up the market treestar Nov 2012 #85

the competitor that will probably step in is bimbo, who also owns entermans (sp?). HiPointDem Nov 2012 #87

Oh geez treestar Nov 2012 #93

they can move it to mexico, or a lot of it. or to canada. or even to china, actually. HiPointDem Nov 2012 #92

I don't eat their stuff treestar Nov 2012 #94

The Wikipedia article is intersting krispos42 Nov 2012 #12

crapitalism. pansypoo53219 Nov 2012 #13

Yep the reich wing is having a field day 47of74 Nov 2012 #14

Hostess employees agree... TeeYiYi Nov 2012 #15

+1. the more i read, the more i believe this is a case of those in charge deliberately HiPointDem Nov 2012 #17

+1 progressoid Nov 2012 #40

Classic 2naSalit Nov 2012 #59

THose fuckers were responsible - Hell Hath No Fury Nov 2012 #18

Kick to read later. Thanks. SalviaBlue Nov 2012 #19

The "My Way Or The Highway" Mindset at its finest! Jamaal510 Nov 2012 #20

If only we'd known. If only someone had been warning us about the consequences of Egalitarian Thug Nov 2012 #23

No doubt libodem Nov 2012 #24

Thank You for the info. busterbrown Nov 2012 #26

Exactly. And it looks like FTI was brought in to liquidate it, sell off brands and property suffragette Nov 2012 #28

Greedy sociopaths sulphurdunn Nov 2012 #29

Buy a couple thousand boxes now ... N_E_1 for Tennis Nov 2012 #30

This message was self-deleted by its author bupkus Nov 2012 #31

My Republican blamed the UNION HockeyMom Nov 2012 #32

Demand for their products has probably gone down LeftInTX Nov 2012 #38

average revenue since 2003 = about $3 billion a year. In 2003 they made a profit HiPointDem Nov 2012 #45

Sorry about that. I was talking off the cuff & didn't have the facts. LeftInTX Nov 2012 #48

no need for sorry but yeah, it's not about their product line at all -- except the looters HiPointDem Nov 2012 #49

And the next 2 years WinniSkipper Nov 2012 #50

They went into bankruptcy 9/04, the very next year after they made nearly $30 million HiPointDem Nov 2012 #51

Correct WinniSkipper Nov 2012 #52

correction: thieves. HiPointDem Nov 2012 #53

Did they try to sell the company? WinniSkipper Nov 2012 #55

Excellent research Pat. Heathen57 Nov 2012 #35

I am confused Model_T Nov 2012 #39

Ripplewood made out like bandits. Pab Sungenis Nov 2012 #43

"Republican or Democrat, a crook is a crook." = +1. Collins also = Citibank. HiPointDem Nov 2012 #46

Thanks, was about to post an angry rant about this... SomethingFishy Nov 2012 #42

k&r Starry Messenger Nov 2012 #47

I come here not to mourn the Twinkie, but to bury it. slackmaster Nov 2012 #54

Not just Twinkies .... SomeGuyInEagan Nov 2012 #57

Most if not ALL of What Hostess Made Was Junk Food triplepoint Nov 2012 #63

When there was a storm femrap Nov 2012 #66

Rodney Dangerfield: "Great Whiz, but How'd You Make It So Thick?" triplepoint Nov 2012 #69

I wasn't a big fan femrap Nov 2012 #91

A "King Kong" allusion? "Oh no, it wasn't the airplanes. It was beauty killed the beast." WinkyDink Nov 2012 #60

On His Death Bed, "Inventor" of the Twinkie Claimed It Wasn't World's Ultimate Junk Food triplepoint Nov 2012 #61

It there a link texshelters Nov 2012 #62

Legalized Looting by Romney Types colsohlibgal Nov 2012 #64

The MSM is reporting that femrap Nov 2012 #65

No, it has to be the unions' fault because, you know... Hissyspit Nov 2012 #70

Isn't it that they make crap? BainsBane Nov 2012 #71

Terrible analogy...Vultures dont kill anything...they are scavengers. hexola Nov 2012 #72

This is how Romney became a very rich man! B Calm Nov 2012 #74

Heard your name mentioned on Thom Hartman's show on my drive home valerief Nov 2012 #75

Right on. yardwork Nov 2012 #76

Can you imagine one of these misanthropes wanted to be our... orpupilofnature57 Nov 2012 #77

Unions were set-up pipewrench Nov 2012 #78

That makes total sense Teamster Jeff Nov 2012 #80

Indeed Libertas1776 Nov 2012 #84

And there it is. Starry Messenger Nov 2012 #83

The Twinkie is NOT dead... Figaro78 Nov 2012 #79

What I don't understand is okieinpain Nov 2012 #82

The vulture capitalist company.... typeviic Nov 2012 #89

Pretty obvious ratcheting of the "blame labor" theme at the last second. DirkGently Nov 2012 #90