Last Call for HoHos, Ding Dongs and Twinkies

This is typical of Bain Capital and other companies like it. They fund a company in need, put in their own executives, pump up their salary, take money out of the company to pay for their investment and then close the company and blame the unions. Happened to me about 15 years ago on a company I worked for and it is happening to Hostess.

I am amazed at all you morons

Some creditors question Hostess pay raises approved in late July.

Brian Driscoll, CEO, around $750,000 to $2,550,000.
Gary Wandschneider, EVP, $500,000 to $900,000.
John Stewart, EVP, $400,000 to $700,000.
David Loeser, EVP, $375,000 to $656,256.
Kent Magill, EVP, $375,000 to $656,256.
Richard Seban, EVP, $375,000 to $656,256.
John Akeson, SVP, $300,000 to $480,000.
Steven Birgfeld, SVP, $240,000 to $360,000.
Martha Ross, SVP, $240,000 to $360,000.
Rob Kissick, SVP, $182,000 to $273,008. Originally Posted by BigLouie

BL ... let's assume that the information above you posted is correct and the "raises" were approved in July 2012 ... the company is in bankruptcy ... there are bankruptcy laws to back out or cancel the "raises" ... and a bankruptcy trustee can go get the money for the creditors ... that's one of the things trustees do in bankruptcies.

Is your point that the "raises" bankrupted the company?

With all due respect ....

"That leaves the company with 1.5 billion dollars! Their expenses are not more than 1.5 billion dollars!" .....

... those statements are not "facts" ... those are your opinions based on your math.

"morons" ... geeezzz ... is everyone who disagrees with your politics a "moron"!

Unions were good things, but when they make unreasonable demands on companies or governmental bodies they lose that value ... and I am not, by that statement, giving a "pass" to management that sops down on the profits while asking employees to make sacrifices. That's not how I have operated my business, so I live what I preach.

Private businesses were established to make a profit, and not to supply unions with jobs and benefits. Private businesses generate jobs and provide benefits, and if the unions want those jobs and want to keep those jobs they need to assure their employees are efficient, productive, and thereby profitable for the company. Management must do so as well.

And lets assume that the information I had that drivers would only deliver bread or snacks but not both is correct. Is that being efficient, productive, and profitable for the company? So two trucks go to Joes Ice House to deliver bread and snacks to sell .. instead of one.

Example: Again my understanding from reports: Non-union linesmen were not allowed to enter New Jersey and New York states to get the electricity back up and running for those hit by Sandy. If that is correct, Why? Give me one good friggin reason!

"Moron"?

BL you have turned a somewhat light-hearted positive thread about a snack food "icon" into a name calling political pissing contest ... why?

And now you have awakened BT, the Board Chihauhau, and cranked up his yelping and whining ... good grief!

Example: Again my understanding from reports: Non-union linesmen were not allowed to enter New Jersey and New York states to get the electricity back up and running for those hit by Sandy. If that is correct, Why? Give me one good friggin reason! Originally Posted by LexusLover

Uhhhhh, what does non-union linemen in New Jersey and New York (from a completely different International Union) have to do with the bankruptcy proceedings at Hostess? One has absolutely nothing to do with the other. It's like trying to draw comparisons between the rules of football vs baseball!

The Green Bay Packers have first down and ten at the New York Yankees 2nd base!

Typical deflection on LL's part!

Typical deflection on LL's part! Originally Posted by bigtex

Typical whining on BT-Chihuahua's part.

Are you admitting you are a twinky? Originally Posted by cptjohnstone

No I;m not a right winger.Take your pick of which you fall into...

Typical whining on BT-Chihuahua's part. Originally Posted by LexusLover

You didn't answer the question! What does non-union linemen from New York and New Jersey trying to assist in the aftermath from Hurricane Sandy (you did not even know whether your reports were actually true) have to do with the bankruptcy proceedings at the Hostess facility in Dallas, Texas?

I will answer it for you: Absofuckinglutely Nothing! Nada! Zilch! LL's grasping at straws! And about as much as the Green Bay Packers having a 1st and 10 at the New York Yankees 2nd Base. One has absolutely nothing to do with the other!

You're comparing apples to oranges! In the future, talk apple to apple or orange to orange. Don't try to mix and match the two! Idiot!

I repeat: Typical deflection from LL(DINO)!!!!!

The union employees were offered 25% of the company, plus several seats on the board of directors; they refused....seems all the union wants to do is complain about capitalists....they had their chance of ownership and didn't take it......now they have nothing.

....they had their chance of ownership and didn't take it......now they have nothing. Originally Posted by Whirlaway

At least until the past four years that has been an option across the board.

BT ... if you cannot see the relevance of the two either:

#1: you don't want to, or
#2: you are incapable of doing so.

Hint: "Hurting consumers"!

You pick and quit whining.

http://www.detroitnews.com/article/2...#ixzz2Ch090Pac

In seeking court permission for its demise, Hostess said it wants to pay as much as $1.75 million in incentive bonuses to 19 senior managers during the liquidation. Hostess is asking the judge to approve its plan — which would result in the firing of thousands of employees — to shut down 36 bakeries, 242 depots, 216 retail stores, and 311 hybrid depot-store facilities, according to court filings. There are 58 other leased or owned sites used for storage, warehousing of products or parking.

Now THAT is bullshit! But in a bankruptcy, everything has to go and be approved through the courts.

Now THAT is bullshit! But in a bankruptcy, everything has to go and be approved through the courts. Originally Posted by Chica Chaser

LOL, a pay bonus when the company goes bankrupt! Who knew?

I am amazed at all you morons who believe as gospel everything printed by crap pot right wing web sites but can't believe real info posted in public.

Salary Increases at Hostess.

Some creditors question Hostess pay raises approved in late July.
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This is Bain capitalism at its worst........a company using bankruptcy as a bargaining chip........it failed so they are liquidating a profitable company......... Originally Posted by BigLouie

No, you can't just go into bankruptcy as a tactic. There are certain requirements you must meet to get into bankruptcy court.

If you're making a profit and can pay your bills, the court isn't going to let you stiff your creditors and walk away. A company has to actually demonstrate it is broke or is about to be broke.

If you want to exit the business to make more money, fine. That means you sell the company to somebody else who will continue to operate it (if it can be). Alternatively, you simply shut the company down and sell its assets and go do something else with the sale proceeds.

But you can't simply say "Hey, I'm broke!" and stiff your creditors if, in fact, you are making a profit.

According to the Think Progress website: "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." Originally Posted by bigtex

LOL, a pay bonus when the company goes bankrupt! Who knew? Originally Posted by WTF

What choice is there? Do the liberals on this board believe that no previous liberal administration ever looked over the bankruptcy laws and spotted this problem? Or that they did spot this problem and forgot to correct it?

There are good policy reasons why senior level people continue to get bonuses and it has nothing to do with company's performance.

The execs get bonuses to keep them at the company during bankruptcy in order to facilitate an orderly wind down of the company. That is in the best interest of the creditors in order to get as much of their money back as possible.

Execs are free to leave companies anytime they want. You can't force somebody to work at a job they don't want. The 13th Amendment says so.

When a company is going down the tubes, everyone with an IQ above room temperature polishes up his/her resumes and contacts a head hunter.

If all or most of senior management suddenly quit to pursue other well-paying jobs, the company would be decapitated and collapse like a house of cards. You can hate the suits all you want, but the bakers and truck drivers don't know how to run the company. You need the execs to wind the company down in a manner that minimizes losses.

The only way to keep the executives is to pay them a salary that is enough to make them stay.

They paid about $3.8 million to 10 executives. There are 18,000 employees. So the bonus comes out to $211 for each employee.

And there is only one executive for every 1,800 employees. That is a pretty lean management structure. So they are not exactly wasting money.

What alternatives do the progressives on here have?

The truth is, if you were on the bankruptcy court, you would make the same decision.

And if one of you was working as an executive at Hostess, you would be looking to exit the company, too, if you have another job offer. And you would not stay at hostess unless you got a financial incentive (i.e., a bonus) to keep you there.

Big Louise is following the talking points again. Repeat after me Louise; Bain was not involved in Hostess. Romney has not been with Bain for many years. The election is over and the lying can stop. What venture capitalists do is legal. What venture capitalists do saves jobs. The union killed Hostess. The executives are pigs but what they did makes them answerable to the stockholders and not you.

You didn't answer the question! What does non-union linemen from New York and New Jersey trying to assist in the aftermath from Hurricane Sandy (you did not even know whether your reports were actually true) have to do with the bankruptcy proceedings at the Hostess facility in Dallas, Texas?

I will answer it for you: Absofuckinglutely Nothing! Nada! Zilch! LL's grasping at straws! And about as much as the Green Bay Packers having a 1st and 10 at the New York Yankees 2nd Base. One has absolutely nothing to do with the other!

You're comparing apples to oranges! In the future, talk apple to apple or orange to orange. Don't try to mix and match the two! Idiot!

I repeat: Typical deflection from LL(DINO)!!!!! Originally Posted by bigtex

The two are both examples of unions putting their own self interest above the organization or the people they work for. In the Hostess case they preferred to force a company out of business because the contract offered was less than they wanted. Now they get nothing.

In the New Jersey example they were more interested in their own benefit over the benefit of thousands of the customers they served that were out of power.

Unions are no longer about safety or fair treatment. They have become about what they can get regardless of the consequences to others.

Off to the Mediator .. so sayeth the Judge.

What venture capitalists do is legal. What venture capitalists do saves jobs. The union killed Hostess. The executives are pigs but what they did makes them answerable to the stockholders and not you. Originally Posted by JD Barleycorn

JD (unlike other posters I don't believe in using insulting names) what the venture capitalist are doing is nothing new. Happened to me once and it happened to a friends company. They move in, move in their own people, give them fat raises, drain the company of the money they used to gain control, stop funding the pension or 401(K) money, try to sell off to unions or employees . When the stain is too much for the company they throw their hands up and say "not my fault, unions would not give in" company dies but venture capital company makes out well. Common ploy. As I said have seen it twice first hand and now it's happening to Hostess.