Hostess goes bankrupt
The economic hardship over the last couple of years has taken a delivered a hard hit to consumers and businesses alike. But nobody expected the makers of the delectable Twinkies and Ho Hos to file for bankruptcy.
This year on January 11 Hostess filed for bankruptcy due to being over $860 million in debt. Could this be the end of the Twinkies? Will we no longer be able to enjoy the tradition of deep fried Twinkie dogs at the State Fair? Will my arteries finally clear but my hope for humanity diminish?
Some say there is hope, but we still have good reason to fear. I know what you are probably wondering: how is it that the producers of such an amazing ground breaking product go belly-up?
“Our pension and health obligations, as well as increased competition and tough economic conditions are to blame for our financial troubles,” chief executive Brian Driscoll said.
But thankfully there is hope. Hostess assures us loyal customers that they will be able to overcome these economic hardships so we can continue to stuff our faces with cream fill deep fried angel food cake.
“We remain hopeful that we can reach an agreement that will allow us to amend out labour contracts so that we can emerge from Chapter 11 as a highly competitive company that provides secure jobs for employees,” Driscoll said. As you would expect from the innovative company that created the mouth watering Ho-Hos and Twinkies, they are going into this recovery with a plan.
“To reorganize ourselves, we must withdraw from multi-employer pension plans, address legacy health and welfare costs and secure new capital to modernize our production and distribution operations,” Driscoll said.
While others rejoice that the company which produces high sugar treats that lead to obesity and diabetes are on the verge of failing, I remember one thing. These are treats to be eaten in moderation, something that have become iconic in American culture. We all have freedom of choice and I choose to eat as many Twinkies as I desire. While you choose to be cynical and judgemental I mourn and hope that Hostess will be able to make a recovery and compensate their much deserving employees.
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