Hostess' Scrumptious End Game: Liquidation
Tweet
Share
E-mail
When you say Hostess and liquidate in the same sentence, don't tell us the first thing you don't think of is delicious, creamy filling.
Today, however, those thoughts are impure, as mediation between the company and its bakers union failed to keep the baked goods maker afloat. CEO Greg Rayburn said closed factories will remain so and 18,500 people will now be out of work. As for the iconic image behind Hostess Brands, either a new owner will sweep in or the names will be gone forever.
The company will now ask U.S. judge Robert Drain to liquidate assets as it moves into insolvency.
Even if things had turned out for the better, it's unclear whether Hostess could reverse the damage of "several" days without revenue. An attorney for the company said things had gone too far in terms of financial damage. Hostess said it was spending about $1 million per day on payroll for workers amid company-wide factory closings.
And that is a reality that's hard to swallow.
Today, however, those thoughts are impure, as mediation between the company and its bakers union failed to keep the baked goods maker afloat. CEO Greg Rayburn said closed factories will remain so and 18,500 people will now be out of work. As for the iconic image behind Hostess Brands, either a new owner will sweep in or the names will be gone forever.
The company will now ask U.S. judge Robert Drain to liquidate assets as it moves into insolvency.
Even if things had turned out for the better, it's unclear whether Hostess could reverse the damage of "several" days without revenue. An attorney for the company said things had gone too far in terms of financial damage. Hostess said it was spending about $1 million per day on payroll for workers amid company-wide factory closings.
And that is a reality that's hard to swallow.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla Q2 deliveries reach 480,126, topping estimates of 406,024
- Pembina Pipeline greenlights $4B gas power plant for data centre
- Lucas GC cancels ATM offering and proposed public share sale
Create E-mail Alert Related Categories
Corporate News, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
