Twinkie Maker Hostess Brands Seeks Court Permission to Pay Manager Bonuses

twinkies 300x206 Twinkie Maker Hostess Brands Seeks Court Permission to Pay Manager Bonuses

Twinkie Maker Hostess Brands Seeks Court Permission to Pay Manager Bonuses

SHAMEFUL:  As more than 18,000 employees with Hostess Brands Inc. set to lose their jobs because the company ceased operations, the bankrupt company is seeking permission to pay bonuses to key managers  as it begins a liquidation that may attract bids from private-equity firms and rivals.

Washington Post:  U.S. Bankruptcy Judge Robert Drain is to consider Hostess’s request to close its distribution centers and 36 bakeries at a hearing today in White Plains, New York. Hostess said Nov. 16 that it would shut down, claiming that a weeklong strike by its bakers’ union forced liquidation. The union blamed management’s concession demands, while some employees blamed both sides.

The U.S. trustee, a Justice Department official responsible for protecting creditors, today asked Drain to take control of the liquidation away from the company. U.S. Trustee Tracy Hope Davis asked the judge to convert the case to a Chapter 7 from Chapter 11 bankruptcy, based partly on the company’s intent to pay bonuses, and appoint a trustee to supervise the wind-down.

Hostess officials “have not demonstrated that the insider bonuses are permissible,” Davis wrote in a court filing.

Once again, management screws the little guys royally just to line their pockets. Unbelievable and shameful at the same time.

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 Twinkie Maker Hostess Brands Seeks Court Permission to Pay Manager Bonuses
Janet Shan is a freelance journalist, blogger and social media consultant. Janet specializes in political and social commentary, as well as business writing. She is the founder and managing editor of the Hinterland Gazette. She is putting the finishing touches on her new novel, a mystery based in the hills on Montego Bay, Jamaica.