Death of the Ding-Dong, Twinkie: Hostess To Shutdown
Reports are that Hostess is starting to close down after a labor dispute. End of a beloved era, or good riddance to junk food heaven?
Twinkies. Hostess Cupcakes. Wonder Bread. Ding-dongs.
They will now be gone forever, with reports that Hostess Brands, Inc., said Friday that it will sell off or close down its 82-year old business. Done in, the CEO claims, by labor union action.
Hostess filed for Chapter 11 bankruptcy protection in January.
The company has been challenged by not only by snarly labor relations, and a national strike by its second-largest labor union, but also, posits the Wall Street Journal, by consumers switching to healthier foods and high ingredient costs.
One caveat: The Journal says that Hostess has threatened liquidation before, and not followed through.
The move puts 18,500 workers out of their jobs, CNN reports.
What do you think about this end to a junk-food kingdom?
Don
10:23 am on Monday, November 19, 2012
After coming out of bankruptcy protection, not once but twice, company executives rewarded themselves with 80% pay raises and then in labor negotiations demanded pay "decreases," and reduced employees health insurance benefits by 75%. Once they raided whatever company profits the could for their own personal gain, they very publicly proclaim that organized labor brought the company to its knees. How typical of corporate America.