Hostess Brands Inc.’s announcement that it will go out of business sent shockwaves through the country Friday, as Americans began hoarding Twinkies and Ding Dongs and bemoaning their fading childhoods.
The company, which also makes Wonder Bread, said it will lay off 18,500 workers, blaming a labor strike by the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union. Hostess, which has filed for bankruptcy twice this decade, threatened to liquidate earlier this week.
The union has accused the company, which logged annual sales of about $2.5 billion, of slashing worker pay and benefits while upper management rakes in pay raises.
On Friday, social media sites saw an explosion of reactions from users, many over the fate of Twinkies, Hostess’ spongy yellow snack cake.
The product has a rich history in popular culture – showing up deep-fried at county fairs and in legal form in criminal trials – and is often suspected of having an infinite shelf life.
The brand, a vintage favorite, even had a starring role in the film “Zombieland,” in which Woody Harrelson’s character Tallahassee barrels through hordes of the living dead looking for a Twinkie fix.
Looks like to me, these union ding dong bakers were looking for too big of a slice of the corporate pie. In America, people with big ideas that take big chances are rewarded a bigger slice of the pie. Business people don't build sucessful businesses just so they can hire people. I bet the owners of this business has set aside plenty of money to personally get through this tough time, but the union workers that decided it wasn't worth it to keep this company viable, don't have two dimes to rub together. Maybe Uncle Sambo will step in and bail them out.
Sofia Mogliazzi at 11:26 AM November 17, 2012
While Hostess Management blames the company’s demise on, what they claim to be, the greedy unions, and the public attributes their disaster to the overly consistent unchanging product line, or just merely to inevitable creative destruction... The real question and concern causing toothaches across the globe is: when the economy crashes and the workers (who were promised a solid middle class lifestyle) find themselves left behind, where do they find economic salvation ? Or in the end is it just the Big Boss Execs' who have a golden ticket out of the mess, while the rest are left to race to the empty market shelves? http://scallywagandvagabond.com/2012/11/twinkies-leads-to-bosses-at-hostess-ironically-now-becoming-very-rich/
joseph.pearl at 9:12 AM November 17, 2012
Other brands such as polaroid and and linens N things have been able to reinvent themselves after bankruptcy. Maybe hostess can do the same.
Joseph S. Pearl, LL.M. - A Professional Law Corporation
1400 Chester Ave., Suite C
Bakersfield, CA 93301
(661) 281-0253
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