[Hostess Brands], which previously survived one multi-year Chapter 11 bankruptcy process, when it operated as Interstate Bakeries, has just made a splash at the NY Southern Bankruptcy court, for the last time, with a liquidation filing. The reason: insurmountable (and unfundable) difference in the firm’s collective bargaining agreements and pension obligations, which resulted in a crippling strike that basically shut down the company.
In other words, the labor unions representing 18,000 workers fought the company, and the unions won… A very pyrrhic victory. Sadly, they are all now out of a job as the unionized victory just happened to lead to the terminal winddown of their employer.
Finally, those 18,500 new initial jobless claims next week? Sandy’s fault.
Love that final line. And guess who’s going to pick up the tab on their pensions? Mr and Mrs Taxpayer, via the Pension Benefit Guaranty Corp. See Twinkies, Ding Dongs Maker Hostess Liquidates Following Failure To Resolve Labor Union Animosity | ZeroHedge.