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Flowers Foods (FLO +0.8%) is in receipt of a second request from the Department of Justice for...

Flowers Foods (FLO +0.8%) is in receipt of a second request from the Department of Justice for more information on the dominance of the company's bread business including the impact of its purchase of Hostess products. Industry insiders think the company may have to end up shedding a brand or two to appease the regulators.
Comments (4)
  • Virginia Harrison
    , contributor
    Comment (1) | Send Message
     
    Somehow I guessed this was going to happen....so why don't we just keep the Hostess/Wonderbread bakeries closed and put thousands of people out of work. At least a corporation did step up to the plate that could AFFORD to make a decision to purchase the bankrupt WONDER BREAD and put folks back to work. Maybe the UNION WORKERS that put Hostess out of business can garner the funds to back back the company, then see what it's like to have to keep the union happy! They'll go broke trying....just like Hostes finally did. Let corporate American do their job and keep the Government OUT of their business!
    13 May 2013, 02:09 PM Reply Like
  • rocketman3
    , contributor
    Comments (27) | Send Message
     
    Good idea, Ms. Harrison. Put the bakery workers on the streets, so they can collect pogey, ultimately being unable to pay their bills, lose their homes and all the while it's costing the government more in unemployment compensation, driving up the jobless numbers which in turn hurts businesses and drives down their profits, leading to staff layoffs which in turn .... That's why we elect politicians to make big, tough decisions like that.
    14 May 2013, 01:56 AM Reply Like
  • CullenW123
    , contributor
    Comments (12) | Send Message
     
    Flowers may have to not be able to use all those labels in some areas but they have plenty of competition just about everywhere, also I seriously doubt Flowers will put Nature's Pride back on the market anyway because Flowers had sued Hostess over trademark infringement rights on Nature's Pride because it was so similar to Nature's Own and its one of the reasons hostess filed for bankruptcy this last time. It is going to take time for Flowers to open any of the bakeries back open anyway that way I see it because they are so outdated and it would cost more to run them in their present condition because Hostess had not put any money into capital improvements for at least 10-15 years, plus I think Flowers bought some of those plants to sell the property to help pay for this purchase because a lot of them are prime pieces of real estate and a lot areas they already have plants very close to them now and it would be cheaper to add bread or bun lines at those plants that are already modern and updated plants and in some markets they may let some one else use the labels for a few a years until they are ready to move into that area and pay Flowers a royalty, Flowers is a very smart company and they are going to do what is best for their future.
    20 May 2013, 10:06 PM Reply Like
  • CullenW123
    , contributor
    Comments (12) | Send Message
     
    Flowers Board of Directors are no fools, they will take time and fight the DOJ in court like they did before when Carter had the DOJ do the same thing in the Carolina's and they finally sold the Raleigh NC plant to bunch of no ones that filed for bankruptcy 6 weeks after taking the plant over and the Sunbeam label and Flowers just put Bunny on the market and then the DOJ came begging Flowers to take the plant back and reopen and Flowers told them to go take a hike and I would say that plant is still standing empty today
    21 Jun 2013, 01:07 AM Reply Like
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