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No incentive for the union to compromise. Unemployment benefits kick in 50-70% of wages and now have been extended to 99 weeks (nine weeks short of TWO YEARS), and that doesn't include any benefits the union adds.
Geez,...a person can walk across the United States 8-10 weeks,..but it's easier to sit on one's butt and draw the extended pay than find a job. One has to wonder how many of the 18,500 employees can find a job that pays more than the one they had at the bakeries?
Mark this as a win for the unions,....I suppose.
That is exactly what a guy they were interviewing on the news said on the picket line. Reporter asked him what he would do if they shut down and he said oh I'll be ok I'll just go on unemployment. No incentive to work why work. This is the America the liberals want.
But how many more would they be selling if parents weren't hesitant to feed their kids junk food? They're nothing buy empty calories and most parents aren't going to choose a Twinkie over something more healthy.
Why do you only lean on "parent's" and "kids" to make your argument? If you've ever spent time in a convenience store, you'll know that the typical consumer of Twinkies is not parents and kids, it's blue collar working men who grab a snack for the road/jobsite. This is a huge market, and snack delivery driver's everywhere are about to be harmed by this closure. They get paid by the number of snacks put on the shelf. People's liveliehoods are at stake here.
Why is it that everything has to have an emotional attachment for liberals to make a point? Today it's "parent's and kids".....tomorrow it's trotting out teachers, police, and firefighters. Why can't you folks speak without hedging???
Why do you only lean on "parent's" and "kids" to make your argument? If you've ever spent time in a convenience store, you'll know that the typical consumer of Twinkies is not parents and kids, it's blue collar working men who grab a snack for the road/jobsite.
Why is it that everything has to have an emotional attachment for liberals to make a point? Today it's "parent's and kids".....tomorrow it's trotting out teachers, police, and firefighters. Why can't you folks speak without hedging???
If they legalized weed hostess stock would be like microsoft back in the day.
I'm not blaming this on the President, just the politics of the Left. The President has nothing to do with this beyond the fact he supports union thuggery.
And the flip side is conservatives pander to the wealthy and affluent.
Rather astonishing to read that, when Hostess emerged from its first bankruptcy (four or five years after filing), it had not only gone from a public corporation to a privately owned one, but actually had more debt than when it originally went bankrupt. From the article:
"Those fortuities aggravated Hostess's two root problems -- a highly leveraged capital structure that had little margin of safety, and high labor costs. Neither problem was adequately addressed in the first bankruptcy, and neither existed to the same degree in major competitors like Bimbo and Flowers Food (owner of such brands as Nature's Own and Tastykake). On exiting the first bankruptcy, Hostess's total debt load was nearly $670 million. That was well above what it went into bankruptcy with in the first place -- an unusual circumstance that the company justified on expectations of "growing" into its capital structure."
We hippie liberals aint hangin' out in no convenience store! Perish the thought. We're at the food co-op buying organic bean sprouts and unroasted, unsalted sunflower seeds. Try to keep up here.
I could buy a box of 12 Twinkies for $2.25 on sale. That's about .38 for 2 Twinkies, which despite inflation, is less than what a package of 2 Twinkies sold for when I was a kid, a long, long time ago. Former owners could not make a go of it and the business fell into bankruptcy.
Venture capitalists bought the business for pennies on the $ and there is nothing wrong with this given the business was shot. Plan A or B was likley to sell the brands and recoup the investment if the unions would not play ball. The rest is history.
Maybe the investors made money. Maybe not. The folks who put the deal together and solicited investors probably did OK given they impose management fees on the acquired companies.
The point of this is that Venture Capitalists, generally speaking, do not acquire healthy, thriving businesses. Best case, the venture capitalist can turn the business around and take it public. Sometimes this means outcourcing to Asia where the product can be produced for substantially less. ( Not the case with Twinkies and Wonder Bread) And sometimes, all that can be done is to sell the assets and close the doors.
Maybe Pepsico will pick up some or all of the brands. Their lcongressional lobby is strong enough to ensure that Congress continues to allow SNAP to buy junk food. And around we go.
Last edited by middle-aged mom; 11-16-2012 at 08:47 AM..
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