Bankruptcy, new owner, no union, Twinkies restored, all is well.
Of course, while that happens the market price will skyrocket. Women will be selling their body for half a Twinkie, Men will work jobs to be paid in Twinkies rather than currency, children will be absconded with the lure of a Twinkie in a van. Damn Twinkie barons!
Sell off to the highest bidder, reopen with no union and less financial burden, you could even hire back many of the same workers. Twinkies are back, problem solved.
Exactly what we should have done with the auto industry.
It said Hostess will be liquidating it's assests to the highest bidder. I have a feeling that Little Debbie will pick it up and continue making twinkies, etc.
My childhood favorites: Cupcakes, Ding Dongs, powder donuts, raspberry filled powder donuts (cant find them anywhere around me), coffee cake, and Ho-Ho's. Add a glass of milk and I'm happy.
The execs called the union bluff but once you look at the numbers you realize how shitty of a job the management team is really doing. And the whole asking for 1.5 million in bonuses for 19 people isn't good publicity.
Basically it was owned by a fund looking for a return unwilling to inject any capital into it. They wanted to meet their bankruptcy goals by cutting labor costs which typically aren't the driving force for positive cash flow but would net a little improvement. Not very creative.
Sun Capital is basically saying hey we'll buy it and turn it around. Now Hostess is in mediation because the public scrutiny and garishness they showed. And the idea that another company will likely turn it around very quickly.
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