SILLY CUSTOMER! YOU CANNOT HURT A TWINKIE!!

[Trotskilicious]

unlike me i went to college and now collect unemployment because i was supposed to be the one to have things handed to me

[hnibos]

My parents paid for everything to make sure I get what I deserve.

[killtrocity]

http://www.forbes.com/sites/adamhart...ement-failure/

Hostess' Twinkie Defense is a Management Failure

Hostess spent decades fighting the trend

IBC kept focusing on operating improvements and better fleet optimization to control rising costs, but the company was unwilling to do anything about the product line. To keep funding lower margins the company added debt, piling on $450M by 2004 when forced to file bankruptcy due to its inability to pay bills. For 5 years financial engineers from consultancies and investment banks worked to find a way out of bankruptcy, and settled on adding even MORE debt, so that – perversely – in 2009 the renamed Hostess had $670M of debt – at least 2/3 the total asset value!

Since then, still trying to sell the same products, margins continued declining. Hostess lost a combined $250M over the last 3 years.

The obvious problem is leadership kept trying to sell the same products, using roughly the same business model, long, long, long after the products had become irrelevant. “Demand was never an issue” a company spokesman said. Yes, people bought Twinkies but NOT at a price which would cover costs (including debt service) and return a profit. Demand statements are irrelevant if you are giving the product away!

In a last, desperate effort to keep the outdated model alive management decided the answer was another bankruptcy filing, and to take draconian cuts to wages and benefits. This is tantamount to management saying to those who sell wheat they expect to buy flour at 2/3 the market price – or to petroleum companies they expect to buy gasoline for $2.25/gallon. Labor, like other suppliers, has a “market rate.” That management was unable to run a company which could pay the market rate for its labor is not the fault of the union.

[MyOneAndOnly]

I just got word that a court has ordered Hostess to reenter talks with their union.

Looks like the company won't be shut down... at least not right away

[Trotskilicious]

wow that was from Forbes? I appreciate that defense of labor.

[Trotskilicious]

i remember what the ceo said on cbs this morning "if they don't like it they can get another job."

seriously these people can't even bother to respect the labor

[Tchocky]

Originally Posted by Trotskilicious

i remember what the ceo said on cbs this morning "if they don't like it they can get another job."

seriously these people can't even bother to respect the labor

Nice cop-out answer, clueless CEO.

[Trotskilicious]

he doesn't have to worry much about finding another job of course so he's completely disconnected from blue collar reality

to him, you fuck up and you get tens of thousands of dollars when you leave and then your buddies get you on the board somewheres else

[Trotskilicious]

if he wants to still work because haha lets face it these guys make so much money running companies into the ground they don't ever have to work again

[duovamp]

Just go buy more money.