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Hostess to seek approval for executive bonuses

Striking workers Nam Phan, left, and Randy Goodwin picket outside a Hostess Brand plant, Friday, Nov. 16, 2012, in Biddeford, Maine. Hostess, the maker of Twinkies and Wonder Bread, plans to go out of business, lay off its 18,500 workers and sell its snack cake and bread brands. The Irving, Texas, company said a nationwide strike crippled its ability to make and deliver its products, which also include Ding Dongs, Ho Ho's and Home Pride bread. IBC stands for Interstate Bakeries Corp.

Striking workers Nam Phan, left, and Randy Goodwin picket outside a Hostess Brand plant, Friday, Nov. 16, 2012, in Biddeford, Maine. Hostess, the maker of Twinkies and Wonder Bread, plans to go out of business, lay off its 18,500 workers and sell its snack cake and bread brands. The Irving, Texas, company said a nationwide strike crippled its ability to make and deliver its products, which also include Ding Dongs, Ho Ho's and Home Pride bread. IBC stands for Interstate Bakeries Corp.

NEW YORK — Hostess Brands Inc. plans to ask for a judge's approval Thursday to give its top executives bonuses totaling up to $1.8 million as part of its wind-down plans.

The maker of Twinkies, Ding Dongs and Ho Hos says the incentive pay is needed to retain the 19 managers during the liquidation process, which could take about a year. Two of those executives would be eligible for additional rewards depending on how efficiently they carry out the liquidation.

Hostess is also seeking final approval for its wind-down, which was approved on an interim basis last week.

The process includes the quick sale of its brands, which also include Wonder Bread. Hostess says it has received a flood of interest in the brands.

The company's bankruptcy means loss of about 18,000 jobs.

Comments

waltspecht 1 year, 9 months ago

Lets see now, you want to reward those that caused the Companies failure so that they will work until the Company is sold. Is there something here I am not seeing? If good old Bane Capitol can buy out an industry and sell it off, why would you want these losers to do it? Plus their track record isn't that great that another job is out there waiting for them.

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sad_for_albany 1 year, 9 months ago

That seems to be the trend with excecutives. They want to continue to pay large sums of money to people who have run their companies into the ground. Remember when everything tanked and AIG wanted to pay big bonuses to the folks who ran them into the ground? Seems like I would want new bodies in there to fix things. But executives don't seem to think that way. Most seem to be in it only for themselves with little reguard for the company as a whole.

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jglass 1 year, 9 months ago

I say NOT!!! Who gets bonuses when a company closes? If they are the cause of the closing, then if they choose to stay until that close down day fine, if not, just deal with it!!!!

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whattheheck 1 year, 9 months ago

Have a heart, Walt, Auburn's Gene Chizik walks away with $7.5 million after making $3.5 million a year losing to all. Aren't these "losers" entitled to a lot less money as they still work trying to find the "real books" so the deal can be finished? The "class warfare" struggle is alive and well as we work our way to the bottom of the barrel, with the aid of those in the media. The continuing struggle of the gov't defined "poor", and the "rich" who by gov't definition aren't poor, until redistribution makes all the same--perhaps to become the defined "equally poor".

Locally, if the media wants to take on "worker equity" matters, how about salaries and bonuses of those at Phoebe? Or perhaps an article on those who work hard so those who don't don't have to? Do I like the Twinkie debacle? No, but in this case it is not the taxpayer taking a direct shot to the Ding Dong. After all, it is the Ho Ho season, right?

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chinaberry25 1 year, 9 months ago

Sounds like some of the folks we dummies bailed out 4 years ago. I am ever amazed at the greed of some people. All that money should be given out to every person who voted to keep the plants open, not those on strike, but all the others. Why do exec think they are worth more because they have a fat cat diploma on their wall as compared to the bakers. All said and done, the bakers shut it down, not the execs. Maybe the union knew something we didn't Just like Bob's Candies, the big loans were to give the owners a chance to sell it instead of having nothing. It was a don deal to Mexico. Same with them.

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jglass 1 year, 9 months ago

whattheheck.....love the comedy!!!!!

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whattheheck 1 year, 9 months ago

Thanks I needed that! There has to be humor to keep one going these days..

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Cartman 1 year, 9 months ago

Bimbo Bakeries USA, a division of Grupo Bimbos Inc. from Mexico is thought to be a major suitor for Twinkies, Ding dongs, and possibly Wonder Bread.

I ain't licking the cream from a Bimbo Twinkie.

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dingleberry 1 year, 9 months ago

I'd stay away from those Bimbo Ding Dongs and Ho Hos too, Carts!

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Sister_Ruby 1 year, 9 months ago

I'm all for free markets without Union or Government pressure but this Bonus idea is a little beyond the pale.

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