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Hostess Asks Court to Approve Demise as US Objects

Twinkies, Ding Dongs, Ho Hos and Hostess CupCakes have been lunchbox treats for American schoolchildren for decades. But the food company has been subjected to changing trends in finance and appetites. A combination of forces – resistance against high-calorie processed foods; rising costs of sugar and other ingredients that go into baked goods; private equity investments; management-union conflicts – delivered Hostess Brands Inc. to bankruptcy court. In liquidating, the company is seeking to sell off distribution centers and 36 bakeries, leaving more than 18,000 union staff unemployed. Other corporate bakeries and investors are lining up to bid for the recipes and a company with no union. Management blames the unions for declining concessions; union workers point to mismanagement. A federal judge has urged the two sides to undergo mediation. Meanwhile, nostalgic consumers have emptied store shelves of the calorie-laden treats. – YaleGlobal

Hostess Asks Court to Approve Demise as US Objects

Amid finger pointing by management and unions and changing food trends, company that makes Twinkies and Ding Dongs prepares for closure
Dawn McCarty, David McLaughlin, Phil Milford
Businessweek, 21 November 2012
 Click here for the article in Businessweek.

 

Source:Businessweek
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