No more Twinkies. Hostess Brands has filed for liquidation due to union demands that bankrupted the company. No Twinkie bailout for you, Hostess. This leaves the taxpayer to pick up the cost of their pensions. I suppose Michelle Obama will be happy but the only consolation we have is that Woody Harrelson will have a hard time in the future zombie apocalypse:
Twinkies, Ding Dongs Maker Hostess Liquidates Following Failure To Resolve Labor Union Animosity
Hostess Brands, the company better known as the maker of Butternut, Ding Dongs, Dolly Madison, Drake’s, Home Pride, Ho Hos, Hostess, Merita, Nature’s Pride, and of course Wonder Bread and Twinkies, and which previously survived one multi-year Chapter 11 bankruptcy process, when it operated as Interstate Bakeries, has just made a splash at the NY Southern Bankruptcy court, for the last time, with a liquidation filing. The reason: insurmountable (and unfundable) difference in the firm’s collective bargaining agreements and pension obligations, which resulted in a crippling strike that basically shut down the company. In other words, Twinkies may well survive the nuclear apocalypse, but there was one weakest link: the company making them, was unable to survive empowered labor unions who thought they had all the negotiating leverage… until the led their bankrupt employer right off liquidation cliff. Will attention now turn to that another broke government entity, the PBGC, which will have to step in if the firm’s 18,000 workers are to have any chance of preserving all those pensions they thought they had set for life, until they literally liquidated their employer.
