The news that Hostess filed for bankruptcy last week was met with nostalgic dismay by millions of baby boomers who lamented what they thought was the imminent demise of the Twinkie. Hostess, which emerged from bankruptcy just three years ago, has maybe 100,000 creditors, mostly labor unions and pension funds (one of which is reportedly owed $944 million) that represent the company’s employees. Its debt approaches a billion dollars, a lot by most standards.
Predictably, Hostess says that its competition has fewer labor restrictions, and that to be competitive they must “restructure” their labor agreements. Not good news for the company’s 19,000 employees, of course, though supposedly no layoffs are planned.
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