Twinkies R.I.P.

Monday, November 19, 2012

Hostess has filed for bankruptcy, so it looks like the end of Twinkies, for the time being. There are all sorts of suggestions as to why this is happening, from changing eating habits, to a greedy union. Looking at the epidemic of obesity and how much processed foods people eat, it is hard for me to believe that people don't want this kind of food. I am not a huge fan of Twinkies, though I am saddened that 18,000 people have lost their jobs. One story that isn't getting a lot of press is how much money the higher ups at Hostess were making. From another article:
BCTGM members are well aware that as the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256.
Yep, must have been greedy unions. I am not a business expert, but it looks like a lot of upper level mismanagement. It also looks like they knew things were getting bad and figured to get as much as they could before the company went belly up.


Bob 10:40 PM  

A judge is now forcng mediation instead of allowing Chp 7.

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