Nov. 17, 2012 The world has come to an end. Hostess Twinkies Ho Ho’s, Ding Dongs and other name brand sugary treats may go out of business.
The company that makes Twinkies which is Hostess Brand Inc., also makes Wonder Bread, that white bread we all know has been on dinner tables for decades. The company has been in operation dating back to 1921 or the 1930’s under the name Interstate Bakeries Corporation.
Through a series of mergers that took place in 1995 the hostess brand was purchased from Ralston Purina Company. In 2004 Interstate Bakeries filed for Chapter 11 bankruptcy and in 2009 was renamed Hostess Brands Inc which is the current company.
What Really Happened to Hostess Brands
In December of last year 2011, Hostess Brand decided to cut pensions to workers and had a 700 million dollar loan to pay. Then Hostess decided to file bankruptcy again in January of this year, 2012 claiming it was not competitive and carried more debt up to 860 million dollars.
Hostess Executives Raised Their Own Pay 88 Percent and Received Golden Parachutes
While the company was slashing pensions and wages the head CEO’s were cashing in on executive pay hikes, bonuses and capturing the big bucks for themselves.
March 2012 Brian Driscoll who resigned as CEO taking with him a golden parachute compensation package worth 1.5 million plus cash of 1.95 million for running the company into the ground.
The bankruptcy courts found out that executives raised their own pay checks by as much as 80% in 2011 when they were declaring bankruptcy. It seems that the money stolen from revenues was from executive greed where CEO’s and managers paid themselves very well.
The Teamsters Union and Hostess Brand tried to work out a deal with the 19,000 workers as they faced a huge layoff.
Hostess has made statements that it intends to come out of the bankruptcy still solvent however the workers went on a nation wide strike after rejected a contract proposal. Through a series of bankruptcies Hostess Brand Inc., seems intent on taking away workers pensions and lowering wages rather than improving their brands and lines of products.
Wonder Bread Ho-Ho’s and Twinkies – Heart Attack on a Plate
Consumers are (at least some of them) turning away from sugar which causes fat to accumulate and the USA has the highest rate of obesity in children from eating products like Twinkies, Ho-Ho’s and Ding Dongs which are even sold at dollar stores.
The reports of high sugar treats are plentiful in the food business and how highly processed white bread is basically void of nutrition.
Hostess brand products are all low in fiber, high in canola oils, high in sugar and contribute to obesity and perhaps this is the time to end this dinosaur company that makes terribly unhealthy products after 91 years!! The modern food trends are for whole wheat breads and foods that lower cholesterol not raises the bad stuff.
Hostess Brand is Very Unpopular
The real problem stems from the fact that Hostess Brand Inc’s products are not very popular and are losing market share in bakery sales, confectionery products and there is more competition. To cut pensions and wages however is self defeating in economic terms as a long term goal Hostess never moved or advanced into new product lines or even healthier products.
In order to liquidate it’s assets Hostess must obtain permission from a U.S. Bankruptcy court and says it plans to sell the recipe for Twinkies.
Maybe Hostess after many merger maneuvers and a few bankruptcy claims needs to die a quick death like a heart attack on a plate. Apparently a Mexican billionaire company will buy what’s left of Hostess through a company called Grupo Bimbo that has sales of 9.58 billion annually. Perhaps they’ll come up with a Taco Twinkie instead or a Chimichanga Ho Ho.
Better foods will take it’s place in the long run a much healthier world without Twinkies and no fiber Wonder White Bread. Who eats White Bread anyways?
We can all learn a few tips in making our own bread at home and with bread machines these days who couldn’t make their own healthy breads at home?
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