Hostess closure sparks Twinkies rush

[Headliner]

Prices on eBay for the snack cakes surge, with some sellers asking up to $60 for box of 10<div class=feedflare>
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[Jazzy]

I loved Twinkies when I was younger. They are way too sweet now and I haven't had one in ages.

 

[Evil Eye]

No, up to $99.99 and more for a box! :S

And that company managed to lose money?

 

[DrLeftover]

Who strangled the company?

The BCTGM (Baker's Union) in September rejected a last, best and final offer from Hostess Brands designed to lower costs so that the company could attract new financing and emerge from Chapter 11. Hostess Brands then received court authority on Oct. 3 to unilaterally impose changes to the BCTGM’s collective bargaining agreements.



Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs. The offer to the BCTGM included wage, benefit and work rule concessions but also gave Hostess Brands’ 12 unions a 25 percent ownership stake in the company, representation on its board of directors and $100 million in reorganized Hostess Brands’ debt.

http://commercial-news.com/local/x453723222/Hostess-forces-store-closure