Big Bonuses for Bankrupting and Liquidating an American Icon

Reader comment on: Unemployment for Twinkie Workers

Submitted by Judy Stanley (United States), Nov 21, 2012 13:31

The title should say it all but, for those who need further explanation, listen up. The private equity firm bought out (through a highly leveraged deal) the struggling firm about a year ago. They planned all along to allow the company to continue its demise to the point of bankruptcy so they could cash-in on the 25 +/- brands Hostess owns. What the media continually fails to report is that the unions had agreed to pay-cuts and other concessions on at least two occasions prior to the Bakers Union Strike. The tactic goes like this... Push hardworking people to the edge (sub minimum wage if you converted salaries to an hourly wage), labor takes a stand (which is what management was hoping for all along), management gets to blame the workers for the loss of 18,000 jobs while they, management get their lucrative payday.

I would think Mr. McTeer should investigate the winners (private equity management) and losers (labor who were pushed into a no-win situation) and then decide who the bad guys are. My money is on the one's cash in on the outcome of this sad story. I would hasten to add that your readers would be better served by remembering those hardworking people who were hurt by this deal who probably won't have a turkey for tomorrow's Thanksgiving meal. I'm sorry to say but you sound like a poor sport who lost a kids game. This is no game and these are real people.

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