Hostess Brands replies to strike announcement
Hostess Brands, Inc. issued the following statement today in response to an announcement from the Bakery, Confectionery, Tobacco Workers and Grain Millers International that its members at some Hostess bakeries have gone on strike as of today.
“A widespread strike will cause Hostess Brands to liquidate if we are unable to produce or deliver products. If that’s the case, the company will move promptly to lay off most of its 18,300-member workforce and focus on selling its assets to the highest bidders.
“We urge our employees to remain on the job to rebuild the company. Sixty-four percent of our workforce is composed of non-union employees and employees represented by unions that ratified our proposals for modified collective bargaining agreements. We believe they have earned the right to rebuild Hostess.
“We know the concessions are tough, but it would make more sense for unhappy employees to simply leave the company voluntarily than to strike and cause the company to close down, forcing everyone to lose their jobs.”
J.C. Penney posts big 3Q loss
J.C. Penney reported it lost $123 million, or 56 cents per share, in the quarter ended Oct. 27. That compares with a loss of $143 million, or 67 cents per share, a year ago. Revenue dropped 26.6 percent to $2.93 billion in the quarter.
Shoppers still are turned off by the company’s pricing plan implemented in February that gets rid of hundreds of sales events in favor of everyday low prices.
J.C. Penney is tweaking its strategy again and will begin to display on price tags the “suggested” price from manufacturers along with Penney’s “everyday” price.
It also is hoping to bring back customers with its big Black Friday sale.
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