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These are the kind of "job creators" the right worships.
Quote:
Originally Posted by OpenD
The view from the other side: A Venture Capitalist bought the Hostess debt, knowing they could get their money back by breaking up the company and selling the assets. They were willing to keep the company running only if they could get the workers to agree to massive cuts in pay and benefits, including the company's pension obligations. When some of the workers said "No, those cuts are too deep," the VCs pulled the plug. Of course they want to blame it on the union, but this was in their playbook from the beginning. And all those lost jobs are just collateral damage.
And yes, the reason for Hostess being in trouble in the first place was declining sales. That kind of high-carb sugary snack is way out of fashion, especially for feeding to kids, although it is still popular enough among adults to have a reasonably strong future. Had they been managed well, and necessary cost savings been found on an ongoing basis, I have no doubt the company could have survived.
As it is, the Trademarks and recipes and all will be sold off to another company, who will bring them back to great fanfare, I am sure. There is simply too much affection for them by consumers to disappear just yet.
I never really liked Twinkies that much but I LOVED Ding Dongs when I was a kid. As Nita mentioned, I'll miss the nostalgia of the Hostess products but not so much the products themselves since they weren't the healthiest things to eat.
These are the kind of "job creators" the right worships.
No one can create jobs out of thin air. Hostess did the right thing. They had to deal with declining sales, and the unions weren't helping the matter. Only a leftist would think that a company should keep going at the same level of production using less revenue.
If there is enough of a demand for those snacks then someone else should be able to restart the company. But it would have to be with fewer of those workers, along with salary cuts, or with some other methods of cutting costs.
I find it interesting some have issues with the pension fund and wants to go after the little guys (the workers). Perhaps management of it was expensive but challenge anyone to name any investment fund that is run on a shoestring. Hostess Brands had been in business 82 years and employed 18,000 at the end. That's a whole lot of people on pensions and I doubt they're living the high life like the handful of bigwigs who pocketed millions over the years. Stop and think a minute!
I think them getting rid of Chocodiles was the beginning of the end for them.
All kidding aside, it's kind of messed up that the company went through 2 bankruptcies, 6 different CEO's and yet not one could turn the company around.
No, they were always terrible. Most likely your tastebuds just matured to the point that you finally realized that.
I often wonder about that. I'm not so sure that it is only that my taste has matured, because in some cases I know different.
Like, we used to buy little bags of Wise potato chips on the way home from school. They were nice and greasy with crispy bubbles in the chips, but now all potato chips are ruined, IMO, because they use nasty healthful oil that leaves a nasty aftertaste.
Same with pretzels. It is hard to find a pretzel that tastes as good as they used to taste.
No one can create jobs out of thin air. Hostess did the right thing. They had to deal with declining sales, and the unions weren't helping the matter. Only a leftist would think that a company should keep going at the same level of production using less revenue.
If there is enough of a demand for those snacks then someone else should be able to restart the company. But it would have to be with fewer of those workers, along with salary cuts, or with some other methods of cutting costs.
What he said.
It is typical Liberal thinking that money to pay for things just comes out of thin air too.
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