Not That Easy Judy

Reader comment on: Unemployment for Twinkie Workers
in response to reader comment: Big Bonuses for Bankrupting and Liquidating an American Icon

Submitted by Tom Gates (United States), Nov 25, 2012 08:57

You mean the private equity firms that have very close ties to the Democratic Party? Pays to have friends.

The fact is that Hostess has been in bankruptcy or reorganization for many years, not just one or two years. The failure of this Company is a combination of failure from management and labor. From management, the failure to provide the resources for advertising and product developement, from labor, anitquated work rules, mainly from the distribution side of the business as Holman Jenkins pointed out in his recent Wall Street article on the subject. Additionally, because of operational efficiency in bakery operations, the bakers jobs themselves were no longer based on baking skills, but watching the machines doing the baking. It is only natural that bakers' wages were going the wrong way. Add to this the assault on obseity and an industry plaugued by low profit margins and you get the current state of the world. So in the end you are right Judy, the intangible assets of the Hostess brand is probably worth more than anything else and will go to auction. If the Hostess brand goes to Mexico do to lower wages and cheaper, non-protected sugar costs then it might make a go of it.


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Other reader comments on this item

Title By Date
LET'S DO IT! [3 words]Dan CalabriaNov 21, 2012 20:07
Big Bonuses for Bankrupting and Liquidating an American Icon [247 words]Judy StanleyNov 21, 2012 13:31
⇒ Not That Easy Judy [206 words]Tom GatesNov 25, 2012 08:57

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