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Hostess Tries to Sell Its Brands

Written by Gary North on January 29, 2013

Members of the small union that refused to bargain with Hostess are now looking for work. “I guess we showed ’em.” Yes, they did.

They are on food stamps now. They are receiving their unemployment checks from the federal government. The taxpayers are paying for their stand against the capitalists who owned Twinkies. With respect to taxpayers, union members are saying, “I guess we’re showing them.” Yes, they are.

The company is selling off its brands. Most of them I have never heard of. Little Debbie is bidding for them.

The Hostess product line was fading. This shows what happens when companies rest on their laurels. The firm had lost market share. It had a line of marginally profitable products, like Yodels. It borrowed against these names. Management lost. So did the lenders.

If your company is not growing, you’re in trouble.

Anyone who lends money to an old company that is not growing is taking a huge risk. Don’t buy the stock of such a firm. Yet lots of investors did.

The company wants a fast sale. The longer that these products are off the shelves, the more likely it is that buyers will switch loyalties.

Loyalty? To Yodels? Little Debbie had better act fast. People with sweet teeth are committed to sugar, not recipes.

What is true for companies is also true for careers. If you’re not advancing, you’re in trouble. You are expendable.

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15 thoughts on “Hostess Tries to Sell Its Brands

  1. bad news for tax payers but serves the un ion people right for their geed

  2. These employees did it to themselves cause they could still be working and thanks to the union they must now live off tax payers. Oh, I am sorry, that is what they want so more rely on the government. You know, sred the wealth. I feel sorry for their children cause now they see how great the union is.

  3. Those people should drop the union and band together to talk to Hostess. They might if they have any common sense be able to save their jobs with an equitable solution directly with the company.

  4. I remember crossing picket lines at the airport when Eastern Airlines was striking for higher wages. Where is Eastern now? Unions probably served a good purpose back in the late 19th and early 20th centuries when there was exploitation of children in mills and factories, but in this age it's just a protection racket designed to kill competition and keep wages artificially high for the membership.

  5. Unions have there roots in communism…

  6. "They killed Twinkie!!, the b……s". Sorry, been watching to much "South park".

  7. "Exploitation of children in mills and factories". You mean, employing willing youths to work meaningful jobs in the real world instead of spending their childhoods in our prison camps we call "public schools"? One of the reasons the government school system was pushed by "reformers" was to keep kids out of the labor market and wages up. Don't forget, those workers in mills and factories came from somewhere. They weren't forced into the mills and factories. They voted with their feet and took those jobs because they were so much better than what they had on the farm.

  8. This is why the Japanese ate our lunch. In Japan, company is family, and company loyalty is everything. The employees don't try to rob the company, and the company bends over backwards to take care of its employees. And Japanese CEO's who run the company in the ground don't get big bonuses — they lose their shirts, because they are part of the company, too, not a high priced "executive" hired out of the market like an NFL rookie.

  9. All it does is make the upper crust of the unions rich and the peon union members out on the street. How stupid

  10. I would like to see a return to the apprentice system: a neophyte learns cabinet making, auto repair, welding or some other useful role in society from a veteran at the trade or craft. Let the compensation be decided between the master and apprentice, not locked into some arbitrary "minimum wage" dictated by people who don't contribute anything viable to the world anyway. You can't put a price on the experience and cumulative knowledge the master imparts to the beginner anyway, who doesn't have a marketable skill to offer yet.
    This is what was lost in American productivity when MBA's took over management of companies. That's where the disconnection between the product and management was broken and America lost its edge.

  11. I agree. It also keeps the mob in spending money and campaign funds

  12. Dude, the union people had nothing to do with this. It was total mismanagement by the company heads.
    http://www.aflcio.org/Blog/Organizing-Bargaining/

  13. ROFL. Unions have their roots in wanting decent pay for a decent workday. I guess you're in favor of slavery, huh?

  14. Twinkies was my FAVORITE PASTRY! I cared for nothing else, except for Hohos and Cupcakes.

    I hope someone brings these three back with the Hostess name. I hate lil Debbies, yuuuk!

  15. David hit the nail on the head. Very well said sir!