Hostess Brands to close in face of strike

Thomas Lifson
The announcement that Hostess Brands will liquidate itself in the face of a potentially long strike will cost 18,000 people their jobs, and close the maker of Twinkies, Wonder Bread, Drakes Cakes,  and other unhealthy yet iconic baked goods.  The only surprise for me is that the company has lasted this long, its life prolonged by bankruptcy and restructuring. Now it is closing, and its assets - including facilities and brand names - sold off. We can expect some of the brands to reappear as specialty items, probably at a higher price than now, as nostalgic specialties. I have been watching the commercial baking business for many decades, as a former involuntary member of the American Bakery and Confectionary Workers Union and the Teamsters (paying initiation fees and dues was a condition of working in a competitor of Hostess during the summers of my college years). Even back in the 1960s, producing supermarket loaves of bread and snack foods in factory bakeries was a terrible...(Read Full Post)

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