So, last week it was announced that Hostess is going bankrupt. What does that tell you about the economy when a bakery that is 80, yes 80 years old and survived the FIRST great depression, is now having to close its doors?
18,500 people are going to be one job shorter if the bankruptcy goes through, the blame falling firmly on the shoulders of the Baker’s Union. BCTGM (Bakery, Confectionery, Tobacco Workers and Grain Millers International Union) went on strike shortly before, during a time when the company was already crippled with debt. Ironically, this is not a first occurrence for our cake-roll-folks, nope, this happened once in 2004. At that time, Hostess (Interstate Bakery at the time) was bailed out by General Electric Capital and GE Capital Markets as well as others, with liens and loans helping it limp out of its bankruptcy.
What was the big push at the time? My thought is that it could have had something to do with the Mexican baking company that wanted to buy Interstate Bakery. After restructuring and getting new Executives, Hostess emerged from the rubble, giving us our Twinkies, Cupcakes, and Wonderbread (yes, Wonderbread is a Hostess product).
While Little Debbie must be dancing in her shoes, I, and probably a few other carb lovers, am crying a little on the inside. I was a Hostess Cupcake kid, eating the white drawn-on embellishment followed by the chocolate icing off the top. Next was eating as much of the chocolate cake as I could before getting to the ooey gooey center fluff (which I’m pretty sure was a mix of hydrogenated oil and sugar). Those were the good ol’ days, yes they were.
Will Hostess be able to quell the uprising? With the union recognize that 18,500 people suddenly being without jobs would be a bad thing? Especially when the Executives are still getting bonuses? I’ll admit, that seems fishy to me. If you can’t manage the money of a company and it goes bankrupt, you get a bonus? What the hell is that all about? OK, rant on that topic done.
I know we don’t want to indulge in our carb cravings, but somehow I hope this all turns out OK, because I want Hostess here to stay!