That they are still a going concern with all of the unnecessary debt load that was incurred via all of the non-value-added sales is a miracle.
The history of Hostess is even more checkered. At one time they were owned by a computer company! That they survived as long as they did through a series of incompetent management and unnecessary and non-value-added sales is also a miracle.
The unions may have been the ones to put the final nail in the coffin, but most of the nails were put in my Bain-type idiots who were more concerned with short-term profits than maintaining the longterm health of a company that provided a product that millions of people enjoyed.
Not every buy out or bail out works. Many fail.
I remember PSA Airlines on the west coast ca. 1990. They were loved by customers and employees. Then US Air buys them, their routes, gates, planes; drop the name PSA and in a few years mostly close down former PSA operations.
Along comes United shuttle, yuk but they kept operating and finally Southwest Airlines which thrives in the same space.
Thanks for your sterling analysis, Mr. Axelrod.
Just for your information, the typical LBO portfolio company is purchased by "Bain-type idiots" for a holding period of seven to ten years - "short term profits" are the exact opposite of the LBO investing model.
Don't forget the many nails put in by the EPA, OSHA, USDA, Sarbanes-Oxley, Workmen's Comp, Unemployment Insurance, Property Taxes, Health Insurance Mandates . . .
Bammy folks should be thrilled they hate Twinkies anyway. Try and find one in a school cafeteria, or a lunch bag, since they now examine them, for content.
“that provided a product that millions of people enjoyed.”
When I was working I bought myself a Hostess Cherry Pie every single day.