An iconic company we all know and some love is shutting down, permanently, this being its final bankruptcy of three in eight years. The final straw? Unions that refused to compromise, even though the company warned them it was teetering on the edge of no return.
There are unions, and there are unions -- and plainly this one was too greedy, and now suffers the logical consequences of grasping at too much: instead of continuing working, albeit at lower wages, they are out of jobs, income reduced to zero.... Hostess Brands, the bankrupt baker responsible for Twinkies, Wonder Bread and other goods. The company said Friday it has asked a bankruptcy judge for permission to go out of business and lay off 18,500 workers, blaming a labor strike by members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.
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Texas-based Hostess, which has about $2.5 billion in sales, said it had suspended operations at all of its 33 plants around the United States as it moves to start liquidating assets. The expectation is that other baking companies or investors will scarf down the brands, giving its products a good chance at a new life under different ownership.
And in all likelihood, their stubborness will cost the taxpayers as pensions will have to be covered.
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