WTF!!?!? They laid-off thousands of workers and still had the nerve to ask the Judge to allow close to $2 Milli in bonuses?
According to The Huffington Post:
Hostess Brands Inc. said Thursday that it’s in talks with 110 potential buyers for its iconic brands, which also include CupCakes, Ding Dongs and Ho Hos. The suitors now include at least five national retailers such as supermarkets, a financial adviser for the company said in bankruptcy court. The process has been “so fast and furious” Hostess hasn’t been able to make the calls seeking buyers it previously intended, said Joshua Scherer of Perella Weinberg Partners.
“Not only are these buyers serious, but they are expecting to spend substantial sums,” he said.
The judge approved Hostess’ bonus plan, according to a tweet from CNBC:
BREAKING: Judge approves Hostess bonus payout plan; 19 Hostess senior executives in line for up to $1.8M in bonuses
29 Nov 12
The update on the sale of the company’s brands comes as Hostess seeks approval in U.S. Bankruptcy Court in the Southern District of New York in White Plains, N.Y. to give its top executives bonuses totaling up to $1.8 million as part of its wind-down plans. The company says the incentive pay is needed to retain the 19 corporate officers and “high-level 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. The bonuses would be in addition to their regular pay. A spokesman for Hostess noted executives will need to meet certain goals to get the bonuses.
The bonuses do not include pay for CEO Gregory Rayburn, who was brought on as a restructuring expert earlier this year. Rayburn is being paid $125,000 a month.
The company’s shuttering means loss of about 18,000 jobs. Hostess said it will need about 3,200 employees as it begins the wind down process, including 237 employees at the corporate level.
In court Thursday, an attorney for Hostess noted that the company is no longer able to pay retiree benefits, which come to about $1.1 million a month. Hostess stopped contributing to its union pension plans more than a year ago.
The company’s demise came after years of management turmoil, with workers saying the company failed to invest in updating its products. In January, Hostess filed for its second Chapter 11 bankruptcy in less than a decade, citing steep costs associated with its unionized work force.
These companies keep failing but their Top Execs always manage to walk away with their cushion-y bonuses intact.
This isht isn’t right.
Images via shutterstock