“Then there seems to be no problem here at all. If a profit isn’t being made under the current circumstances you find a way to change that. Free enterprise.”
Right. Somebody else will take it over. The other snack cake companies seem to be doing fine.
Maybe Hostess was just poorly run.
My completely uneducated guess from what I’ve read? It was a pretty good mix of poor management and heavy handed unions. Bottom line is, companies fail all the time for a multitude of reasons. If there was a chance to save this and these 5,000 employees refused because they didn’t like the terms then they are free to fully embrace their unemployment. Problem is, they took 13,500 others down with them.
Hostess was a premium brand which fell out of relative favor during these tough times, with decent, close generics being easily had at the Wally World and other emporia.
If I were looking for a way to improve snack cakes it would be to come up with a near foolproof way to stop them sticking to the wrapper so bad that a layer peels off when unwrapping them.