Twinkie Maker Hostess To Close Case Study

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Twinkie Maker Hostess to Close Rachel Feinzeig, Mike Spector, and Julie Jargon, Wall Street Journal: "Twinkie Maker Hostess to Close'' Friday, November 16, 2012 After failing to make an agreement with the Bakers' Union, Hostess Brand Inc. said it would go out of business on November 16, 2012. Hostess was the 85 year old producer ofmany treats found in lunches, breakfasts, and even dinners such as Twinkies, Ding Dongs, Ho Ho's, Donettes, Wonder Bread, Nature' Pride, and Dolly Madison. Even though over 18,500 jobs would be lost, Hostess still decided to liquidate or quit. Hostess CEO Greg Rayburn announced that it had over 100 million in debt and that his company had been working at a 50 percent capacity. Hostess had to make an 8 percent wage cut for the employees so they can terminate the debt. Many workers went on strike because they obviously didn't want an 8 percent wage cut. The work at…show more content…
More importantly, it hurts the lives of the many people that were working for Hostess. They can't make a living without a job, without a job they wouldn't have the money to pay for their bills or even their house and might even add to the growing population of homeless people. It would also hurt the states in which the bakeries or plants were shut down. Also, the liquidation affects the people who love Hostess, people who grew up with Hostess, and the new-coming babies that won't be able to enjoy any of their products anymore. The Union is supposed to help the economy, not take away businesses that will help it. Efforts made by the Union to keep Hostess and get a better pay and benefits for the workers were too expensive and not very reasonable. I think they should have tried to work out a better plan instead of making it practically impossible for Hostess to agree. Because Hostess went out of business, it will affect not only the lives of more than 18,500 workers, but it will also hurt the economy of the United

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