It's been a bad few days for sponge-cake tubes filled with sugar and whipped lard.
It started last week when it looked like Hostess was going under, due to their bakers' union strike. Then just yesterday there was light at the end of the tunnel. First, several possible buyers for the beloved product came forward. Then a judge ordered both sides into arbitration. It looked like there was a bit of light at the end of that sponge-cake tunnel.
But today the arbitration failed. Now the company's owners (or rather, their lawyers; Im doubt that Wall Street firms can be bothered to actually show up in court since they're so busy voting themselves huge bonuses for mismanaging Hostess) will go into court on Wednesday and ask the judge for permission to shut down Hostess for good.
But it's still not over. While most potential purchasers don't want the baggage that goes along with Hostess, baggage like labor agreements and production facilities, one private equity firm wants to buy Hostess as a going concern, reopen closed plants and continue workers' contracts.
I think its time to retire Twinkie the Kid; I think we're all tired of all those "last roundup" jokes after the last few days. I think a better future mascot for Twinkies should be a zombie t5hat continually rises from its grave in search of whipped lard.
I posted this short piece as a new article rather than as yet another update to my previous post on the subject. If I hadn't, there would soon be more update than original article. I kept it short since I expect to need to update it a few times. Stay tuned.
The Blues Viking
The opinions here expressed are mine and if you don’t like them you can get your own damn blog.
Hostess Shutdown on Hold (CNN Money, Monday Nov. 19)
Twinkie talks fail as Hostess and baker's union are unable to reach agreement (NY Daily News)
U.S.: Hostess liquidation bonuses too sweet for managers (Chicago Tribune)
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