22 Nov 2012 The Great American Twinkie Crisis

Hostess, the company that since the 1930s has provided America, and the world, with snacks that are nearly indestructible, looks like it is definitely going out of business. Its famous brands, Twinkies, Ding Dongs, Sno Balls, Ho Ho’s, CupCakes, Wonder Bread and a host of others, will live on, no doubt, with new owners.

Hostess blames a nationwide strike by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union for the imminent death of its brand.

In response, the workers say management has failed to innovate – the company’s products have not changed in decades or adapted to new tastes and new concerns about nutrition and so have failed to keep pace with the market.

A bankruptcy judge briefly kept hope alive for fans of the sugary guilty pleasures by urging the bakers and the bosses to try to work out a resolution through private mediation that might have kept the Twinkies rolling out of the ovens (or wherever they come from). The latest reports are that the mediation broke down and that the company will proceed with liquidation. That means 18,500 people will lose their jobs.

Two questions come to mind. First, did the workers understand how close to ruin the company was when they decided to go on strike? Second, did the owners bother to listen to employees’ concerns about improving the product line or did they just let the brand drift into financial crisis?…..

LA Times: Read the full article

Vulture capitalism — not unions — killed Twinkies

Hedge funds took profits and piled on millions in debt at Hostess. They created this bankruptcy, not unions…. Salon.com

No more Twinkies? Others could buy Hostess’ brands

News that Hostess Brands is closing shop is creating a host of business questions, including the fate of iconic brands such as Twinkies and Wonder Bread…. USAToday