Quote:
Originally Posted by lazycash
The bankruptcy judge has ordered Hostess and the union to go through mediation to try and work things out. There's a good chance that Hostess will continue operating. Seeing those executives raises makes one think they took one last cash grab with the idea that the end might be near. I don't see how we could be better off having another 18k people out of work.
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I think we are seeing the last death rattle of a sinking ship here. Sure, the CEO's made a cash grab. The company has been operated by bankers that specialized in liquidating companies for a few years now. They just want to part it out and walk away with the cash and not look like the bad guys.
To be fair I was reading some stuff about the unions and there are some pretty ridiculous things going on. For example if they send a bread product and a cake product to the same location two different people have to unload it because bread guys can't touch cake products and so on. They could streamline things, but I don't think they really care to. I think the ultimate hope here by those controlling the company is that they sell it off to some other investor who either take production off shore or they break the union and keep things here. I'm not so sure the bankers really are interested in running this as a viable business.