Originally Posted by Ramous
I hate when this kind of thing happens. Thousands more unemployed. All because the greedy CEO is a POS.
Safe to assume you are a union member?
I work for a competing bread company. Hostess also (used to) make Wonder Bread, and Natures Pride Bread. I'll likely increase my sales now without them in the market.
At corportate sales meetings, they were always discussed. True, Hostess was poorly run. They made lots of bad decisions, like trying to price themselves lower than
all of the competition, to the point where many products were sold at a loss. They were hoping to drive other companies out of the market, but all it did was lose
money for Hostess.
But the biggest problem was the bakeries. They have 55 bakeries, all running at about 25% capacity. They needed to trim down to 20-25, but Unions threatened to strike if any were closed. This waste was bleeding them dry. They had to take out loans in millions to keep all those bakeries running.
So its hard to blame anything on "greedy ceos". The company has been loosing money for 10 years! In that time they have gone through 7 ceos trying to fix the problem. They all ran into the same issue. Massive benefits to union employees, and to many bakeries.
Truth is, the BRAND will be better off now. Twinkies and wonderbread will survive. Someone else will buy the BRANDS and produce them in a more efficient way.
But its terrible news for the workers. Even the bankruptcy judge had said that a strike would kill the company. And it did.