No. of Recommendations: 3

Hostess first went into bankruptcy in 2004. Vulture capital funds have been in control ever since, and they have squeezed many concessions -- and unilaterally imposed others -- from the unions.

Its an interesting article -- about a company in trouble which was not rescued by a number of Bain-like companies who thought they could exploit and squeeze other shareholders to their benefit.

The article's best paragraphs are its last two:

"Although it now appears that Hostess is done, this is not the end of the story. The brands Hostess owns retain value. Someone will likely produce Twinkies again. The plants and workers are also valuable and will likely find bidders. Silver Point and Monarch—as well as the other secured creditors—will realize some value for their investment in the company, although certainly far less than they had hoped. (But, since we don’t know how much they spent on the debt, we may never know whether they gained or lost on the deal.)

"And of course, we’ll be in for a long bout of recriminations as everyone involved points fingers at everyone else. The truth of the matter may just be that Hostess was a failed enterprise that just could not be saved."

So don't worry: Twinkies will be here. bad vulture management can't destroy the brand.
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