Interstate Bakeries threatens to liquidate unless unions grant concessions (Twinkies & Wonder bread)

[Omaha Steve]

http://www.kansascity.com/105/story/274696.html

By JENNIFER MANN
The Kansas City Star

Bankrupt Interstate Bakeries Corp. said Thursday it could be forced to liquidate if it is unable to extract major concessions from its 20,000 union workers soon.

The assertion, the latest in an escalating labor confrontation, came in the struggling company’s request to the U.S. Bankruptcy Court for still more time to exclusively formulate a plan of reorganization. The current deadline is Oct. 5.

The Kansas City-based company, once the nation’s largest wholesale baker, sought protection from creditors and time to reorganize the business in September 2004. At the time, the company cited escalating costs, including for pay and benefits for employees, amid declining sales.

At stake is the future of one of Kansas City’s largest companies and the maker of such iconic brands as Hostess Twinkies and Wonder bread.

Interstate officials contend that union concessions are crucial for the company, which employs about 750 in the Kansas City area, to remain a stand-alone entity.

In the filing, Interstate said that it had obtained financing commitments for its reorganization plan but that those commitments were contingent on extracting additional concessions from union workers.

FULL story at link.

[iamahaingttta]

1. Actually, we'd all probably be better off...

...if they DID liquidate. More people might eat real food, instead of whatever that stuff is they make.

[Submariner]

2. To threaten a "Twinkie" shortage is nothing short of terrorism

We need Homeland Security to intervene or anarchy will ensue if Twinkie's become extinct. "Oh the humanity!"

[Nite Owl]

3. If the only way a corporation

can stay in business is on the backs of their workers than they shouldn't be in business.

[eppur_se_muova]

4. OMG! If they stop making Twinkies now, even the Strategic Twinkie Reserve ...

...will pass its expiration date in 2017.