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It is a snack had sad day for America -- is the maker of twinkies my favorite.
-- hosting -- all sorts of confectionery delicious -- It is closing its door for good -- 82 year old company.
Failed to reach a compromise with one of its largest unions.
People are expected to lose their jobs CEO Gregory -- joins me now on the phone from Winston-Salem North Carolina.
-- shut up -- -- he's on the phone credit.
Let me ask you how to blame are you putting on the unions here I mean I understand that you actually made a deal with the -- -- 30% of the workers are represented by the bakers union and and they are the ones that you weren't able to make a deal what does that right how much blame -- put on them.
Well I think quite a bit molest you know certainly the catalyst for our having to two -- the painful deficient -- to shut down.
Was the direct result of the strike that the -- initiated starting last Friday.
You know they -- represent 30% of our workforce they're not our largest union the Teamsters are largest union the Teamsters voted to approve the special.
And they were and they were still at work this week that we had other -- engineers and others that were brought it to life and work in this week that we had.
Every management team member -- -- trying to stake product but -- but the damage you know was was too great from from several plants to really be in out of.
Look at devil's advocate here because there is there is some people who say that.
You -- that this has more to do with the fact that America's taste has shifted away from these products that.
While I loved it tweaking it a good Ding Dong as a kid I would be less likely to buy them and give them to my kids in this day and age.
What were so much more focused on health and healthy ingredients.
And that this is a clever way you blame the unions but maybe it just makes sense.
To break up the company break up the union contracts liquidated -- sell off these brands.
You know -- various private equity and that that's a better way to make money is there any truth to that scenario.
Well a couple of points in there I'd like to address short one -- I don't I don't think -- health health trends that have affected most of them in their.
If that -- -- you wouldn't have anybody making chocolate or chocolate.
What are the mean there's into companies that do -- trick interpret well what -- -- candy.
You know are built -- two and a half billion pre bankruptcy filing that that was the before I got on on -- but.
They believe they didn't go there are very much during the bankruptcy in two and a half billion dollars is one heck of a lot of tweeted then don't overload so.
You know there's the demand has not been really the issue is the cost structure because -- got that debt to make them an element of profit and cost structure was driven by a number of factors that and and I'm not Foley blaming the unions on that -- mean -- history here is that.
Was was not there was not enough capital investment in the business over the past eight spectators so.
And it probably wasn't enough money and aren't -- to the brand extensions that they should have done all of those iconic brand that that exists today.
But the high cost structure of the union cost structure union -- rules.
Yes big pension exposure all of those things you know complies.
A pretty ugly picture.
So -- you go from here because you know we're making a lot of jokes about.
Between key going away which I mean for me I love between he was always just -- -- -- songs together too rich for me the snowballs too much I don't keep up -- Just perfect anyway.
There are a lot of people who feel that way I also heard from a lot of folks in private equity in the last couple days has said.
Those are some really valuable brands and you know people are gonna -- in in bankruptcy.
And pick that mop.
I mean is that the real plan going forward is that you you resell the individual brands and and we are gonna see twinkies ending the -- and all the delicious -- going forward.
Well I hope on the best the only plan that we have left you know we have we have a plan to emerge we -- lenders that would -- the which -- done -- unions on board of we we couldn't get the papers on sports though.
Yeah we have to do now as you know we sent everyone home today and we'll we'll certainly marks and brands and an outdoor fires for those brands but those brand level and then that the good thing and they'll be some recovery.
A candidate to go towards the quite.
Well Greg just in case I gotta tell you I have stock piled on several crates of twinkies in my office it's really hard to get in their right now you can't give an -- at the -- on the one side and I'm trying to sell.
And then -- -- the twinkies on the other that I'm keeping -- not sharing.
So -- you come across any twinkies that you need to unload he -- call okay.
I I was just told about ten minutes ago that there are actually going for quite some fortunately there right now well see in this not looking to make a profit I'm I'm I'm reporting it's gotten very serious for me over here normally I would be tempted by that I would be reselling and on -- but this time -- this morning.
Great and good luck to you and thanks for coming on bank -- trade you we were copy of your book.
Got it all right fantastic pulls up that have a great weekend -- --
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