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The bakers union whose strike crippled Hostess Brands Inc. and ultimately drove it to liquidate continues to blast sale plans that the union maintains "unfortunately" don't preserve "a single job."
The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represented thousands of Hostess workers who went on strike rather than accept a new labor deal they felt called for too great a sacrifice. The strike ultimately led to Hostess's decision to shut down and sell off its assets piece by piece, a continuing effort the union now says might bring in millions of dollars for creditors but offers nothing to workers.
"Unfortunately, none of the proposed purchasers in any of the asset sales have committed to preserve a single job, and in fact each has affirmatively disclaimed any obligation even to "consider" employing a single worker," the union said in court papers filed Tuesday.
The union, which previously offered the same objection to the proposed $360 million sale of Hostess's Wonder and other bread brands to Flowers Foods Inc. ( FLO ), also said some of the sales could violate federal laws.
"These bids provide minimal assurance that the rights of the debtors' workers will be protected," the union said.
Reached Wednesday, a Hostess spokesman declined to comment.
Also throwing in its two cents was Hostess's biggest union, the International Brotherhood of Teamsters. In court papers filed Tuesday, the Teamsters said they weren't aware of any bids that would restore union workers' jobs, which they said was the "great tragedy" they had hoped to avoid by accepting labor concessions when Hostess was still trying to restructure.
Hostess heads to court next Tuesday to seek court approval for several deals to sell its beloved brands, including Twinkies, Ho Hos and Dolly Madison. Those cake brands and several bakeries have a $410 million bid lined up from Apollo Global Management LLC ( APO ) and Metropoulos & Co. The cake brands were to have gone to the auction block this week, but Hostess canceled the auction after it didn't receive any rival bids.
At Tuesday's hearing, the court will also consider a $31.9 million bid for Hostess's Beefsteak rye bread brand from Mexican bakery giant Grupo Bimbo SAB de CV (BIMBO.MX) and Flowers Foods'$360 million bid for Wonder and other bread brands.
Next week's hearing will also review the winning bids of Friday's auction of Hostess's Drake's and Sweetheart brands. McKee Foods Corp., which makes Little Debbie snack cakes, has offered to start off the bidding for the Drake's assets at $27.5 million. And a United States Bakery Inc. subsidiary is the lead bidder for the Sweetheart, Grandma Emilie's and other bread brands and assets with a $28.9 million offer.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to Dow Jones Bankruptcy & Debt)
Rachel Feintzeig contributed to this article.
Write to Jacqueline Palank at jacqueline.palank@dowjones.com
Subscribe to WSJ: The Wall Street Journal - Breaking News, Business, Financial and Economic News, World News & Video - Wall Street Journal - Wsj.com
Read more: Bakers Union Objects to Lost Jobs in Hostess Sales
The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represented thousands of Hostess workers who went on strike rather than accept a new labor deal they felt called for too great a sacrifice. The strike ultimately led to Hostess's decision to shut down and sell off its assets piece by piece, a continuing effort the union now says might bring in millions of dollars for creditors but offers nothing to workers.
"Unfortunately, none of the proposed purchasers in any of the asset sales have committed to preserve a single job, and in fact each has affirmatively disclaimed any obligation even to "consider" employing a single worker," the union said in court papers filed Tuesday.
The union, which previously offered the same objection to the proposed $360 million sale of Hostess's Wonder and other bread brands to Flowers Foods Inc. ( FLO ), also said some of the sales could violate federal laws.
"These bids provide minimal assurance that the rights of the debtors' workers will be protected," the union said.
Reached Wednesday, a Hostess spokesman declined to comment.
Also throwing in its two cents was Hostess's biggest union, the International Brotherhood of Teamsters. In court papers filed Tuesday, the Teamsters said they weren't aware of any bids that would restore union workers' jobs, which they said was the "great tragedy" they had hoped to avoid by accepting labor concessions when Hostess was still trying to restructure.
Hostess heads to court next Tuesday to seek court approval for several deals to sell its beloved brands, including Twinkies, Ho Hos and Dolly Madison. Those cake brands and several bakeries have a $410 million bid lined up from Apollo Global Management LLC ( APO ) and Metropoulos & Co. The cake brands were to have gone to the auction block this week, but Hostess canceled the auction after it didn't receive any rival bids.
At Tuesday's hearing, the court will also consider a $31.9 million bid for Hostess's Beefsteak rye bread brand from Mexican bakery giant Grupo Bimbo SAB de CV (BIMBO.MX) and Flowers Foods'$360 million bid for Wonder and other bread brands.
Next week's hearing will also review the winning bids of Friday's auction of Hostess's Drake's and Sweetheart brands. McKee Foods Corp., which makes Little Debbie snack cakes, has offered to start off the bidding for the Drake's assets at $27.5 million. And a United States Bakery Inc. subsidiary is the lead bidder for the Sweetheart, Grandma Emilie's and other bread brands and assets with a $28.9 million offer.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to Dow Jones Bankruptcy & Debt)
Rachel Feintzeig contributed to this article.
Write to Jacqueline Palank at jacqueline.palank@dowjones.com
Subscribe to WSJ: The Wall Street Journal - Breaking News, Business, Financial and Economic News, World News & Video - Wall Street Journal - Wsj.com
Read more: Bakers Union Objects to Lost Jobs in Hostess Sales
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