My understanding of the problem is that Hostess is heavily in debt, and
with the growing trend towards eating "healthy", that situation's only
gonna get worse as people opt to snack on fresh vegetables instead of
An arbitrator can set a reasonable wage for the workers, but as long as
the science keeps pointing toward junk food and lack of exercise as the
cause of the obesity trend in kids, there's gonna be less and less
demand for Twinkies, and it'll be progressively harder to make a buck
selling products like that. So, the creditors that own Hostess' debt
want to liquidate the company now so that they can recoup more of their
And, I for one, can understand the creditor's point of view. If I owned
a tabacco company, I'd think it'd be better to sell it now rather than
continue to operate under progressively more hostile conditions as the
science finds more and more health problems associated with second hand
smoke, and the government putts more and more restrictions on where,
when and how I can advertise my product.
Not all their products are junk food. Wonder Bread, for example, has been
thrilling mothers for decades as they watch their snowflakes develop strong
Hostess has an immense infrastructure - umpty-ump bakeries, trucks, etc.
They could simply reformulate some of their products:
* New Twinkie (with apologies to New Coke) - A delicious sponge-cake outer
layer surrounding a stalk of celery! Delicious, and good for you too.
And more ...
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