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Investment Analysis Clubs / Macro Economic Trends and Risks
|Subject: Re: No more Twinkies!||Date: 11/16/2012 9:08 PM|
|Author: putnid||Number: 408744 of 501017|
...worker, who had worked there 37 years: by the time they took away the pension, cut pay and charged more for health insurance, we would be making about minimum wage...Given that Hostess was controlled by a couple hedge funds, there could be more here than meets the eye: like knowingly putting the company out of business, so the brands could be sold for a quick buck, without the baggage of actual pysical assets and without an existing workforce. - Steve
There will be those who will use the "Hostess example" to point the finger of blame at labor unions.
There will also be those who will note the multiple management missteps, multiple bankruptcies, the intrusion of "vulture capitalism" and executive self-aggrandizement as prime causes for the cratering of an iconic firm.
Six CEO’s in eight years
A full decade of financial and operational mismanagement that resulted in two bankruptcies, mountains of debt, declining sales and lost market share.
While the company was demanding major concessions from union workers (wage and benefit cuts amounting to 27- 32% overall), the top ten executives of the company rewarded themselves with compensation increases, with one executive receiving a 300 percent increase.
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