Ah, A sign of the times.
Hostess Foods, maker of Ding Dong, Wonder Bread, Twinkees and a number of other popular (and healthier) bakery foods is selling off it's assets and shutting its doors:
"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," said CEO Gregory Rayburn in a statement.
What happened is simply this...in spite of being the number 2 bakery company in the nation, Hostess was already in trouble because of increased costs for fuel, energy, grains and supplies, and like GM, the cost of a unionized workforce.
They filed for bankruptcy back in January, but managed to keep going because hedge funds like Silver Point Capital and Monarch Alternative Capital purchased their debt and came up with a plan to restructure the company an dmake it viable again, but part of that eventually meant that the unions were going to have to bear some of the pain in the form of reduced pay and benefits.
The Teamsters were willing to deal, and signed a new agreement to keep Hostess alive.The AFL_CIO affiliated Bakery, Confectionery, Tobacco Workers and Grain Millers International Union which represents 5,000 workers at Hostess refused, and voted to strike.
So Hostess is ceasing production, closing down and selling off its assets to pay its creditors.With Obamacare and increased regulations and taxes on the horizon, they figured it was time to shut their doors.
"It's been a very sad day," Rayburn told CNN. "I think that this was just a monumental failure on the part of everyone involved, and it was just the wrong outcome."
It's even sadder for the over 18,500 workers who are going to lose their jobs because 5,000 members of the Baker's union decided to go for broke.In a reprise of that old proverb, instead of half a loaf, they're going to end up with none.
Hostess, among its other assets has its brand names and proprietary recipes to sell, and someone will probably be eventually making Ding Dongs, Wonder Bread, and Twinkees again. But it probably won't be the people that used to work at Hostess.Those jobs are history.
Richard Trumka, the openly socialist head of the AFL-CIo made the expected remarks about 'Bain-style Wall Street vultures' and 'crony capitalism, and I'm sure it was a fine show that will get plenty of favorable attaboys on the left.
Of course, without those so-called Wall Street vultures Trumka is so exercised about, Hostess would have folded back in January,but hey, why ruin a good show?
Because that's where we are now. Circuses, but no bread.