Twinkie is Making a Comeback Without Big Labor

Hostess

It seemed like the Twinkie was done for at the end of the last year. Due to high-labor costs and a union unwilling to make concessions to end a strike, Hostess was forced to liquidate its assets, including the spongy, creme-filled snack. But the Wall Street Journal notes that the Twinkie and other sweet snacks will be make a comeback July — and labor unions won’t have any influence:

The company that bought the Twinkie, HoHo and Ding Dong brands out of bankruptcy is gearing up to reopen plants and hire workers, but it won’t be using union labor.

Hostess Brands LLC—Metropoulos & Co. and Apollo Global Management LLC’s APO +3.00% new incarnation of the baking company that liquidated in Chapter 11—is reopening four bakeries in the next eight to 10 weeks, aiming to get Twinkie-deprived consumers the classic snack cake starting in July.

Chief Executive C. Dean Metropoulos said the company will pump $60 million in capital investments into the plants between now and September and aims to hire at least 1,500 workers. But they won’t be represented by unions, including the one whose nationwide strike sparked the 86-year-old company’s decision to shut down in November.

Metropoulos and Apollo, the company that bought Hostess, is opening up bakeries in couple of right-to-work states, including Georgia and Kansas. Illinois and Indiana — neither of which are right-to-work states — will also get bakeries as well. All told, Metropoulos and Apollo will employ some 1,500 workers in the four plants.

 
 


The views and opinions expressed by individual authors are not necessarily those of other authors, advertisers, developers or editors at United Liberty.