Unions are claiming the company was stripped clean of their bank accounts by investors who took it over and supposedly THAT was why they had problems, not the union.
I don’t think that story is the truth, but they always have excuses and this is the one they’ll be talking about while collecting two years of unemployment and 20 years of welfare.
Basic logic tells me this is pure bullshit. Either a company makes a profit or not. How much cash reserves they have doesn't affect if they are making a profit unless they are relying on interest income. And then if they are they don't need the business. Just close it and make money on interest.
Hostess was unprofitable. The judge reviewed the bankruptcy and he ordered a pay cut but in way of compensation the workers would get a stake in the company. The union refused the offer and now they are all out of work.
Bottom Line: The union played chicken and lost.