Well, it’s over people. We will no longer have to face another menacing Twinkie, Ding Dong, Ho-Ho, or Cupcake again; because the company, Hostess, which makes these treats, is now officially out of business.
How did this 100 year old company meet its maker? Was it because of the healthier eating habits of people? Was it corporate mismanagement? Was it just another repercussion of the economy struggling to get out of the ditch?
Well, the answers as follows: No, No, and No.
The thing that drove this company out of business was a week-long strike by the Bakers Union workers for that company. Despite repeated pleas and warnings by Hostess management that such a strike would cripple and eventually lead to that company’s bankruptcy and closure, the union decided that going on strike was the best and only course of action.
Well, here we are, across the Rubicon, and lo and behold Hostess has been forced into bankruptcy liquidation, and about 18,500 people will join the ranks of the unemployed in this country — including all of the union workers.
It kind of begs the question as to whether or not this strike was worth it. I mean even in the best economy a job is better than no job. Or am I sadly mistaken in that line of thought?
This all didn’t happen in a matter of days though. No it started months ago when the still struggling Hostess went to union leadership and asked if they would kindly negotiate lower benefits in order to save the company from going into bankruptcy. The union declined. Hostess asked the union again, before a bankruptcy judge mandated those reductions in benefits. The union again declined, and threatened to go on strike. Hostess informed the union that if they went on strike that would certainly spell the end of the company. The union then went on strike; and now Hostess is no more.
The assets of Hostess will be auctioned off through the bankruptcy proceedings, those assets will undoubtedly include the rights to the Twinkies, Ding Dongs, Ho-Hos, and Wonder Bread; which will probably be bought by some foreign company. All of the bakeries will be sold at auction too. The proceeds from this fire sale will be used to pay off Hostess’ creditors. Little to none of the proceeds will go to any of those now 18,500 unemployed people. Job well done Bakers Union; you managed to successfully cut-off your nose, in spite of your face.