Thursday, November 15, 2012
No Twinkees for You
by Clifford F. Thies Financially-troubled Hostess Brands has announced that it is closing three of its 26 bakeries, following a strike by its confectionary workers union that partially closed down its operations. The company had been bargaining for wage and other concessions from its employees so as to restore profitability, and emerge from its second stint in chapter 11 in the past decade, in a market - snack foods - that has been dwindling for some time. The three bakeries are Seattle, St. Louis and Cincinnati. As to whether the company can simply consolidate production in its non-union plants, that depends on whether the Teamsters union honors or crosses over the confectionary workers picket lines. The company says it may completely liquidate rather than further retrench. This is playing out like Atlas Shrugged, is it not? You better act now if you want to include some of those Twinkees, Ring Dings and Hostess Cupcakes in your survival kit. Could be a good source of quick energy when you need it.