Encouraged by President Romney’s “Tough on Failure” policy, Hostess Brands Inc. says it’s going out of business after striking workers across the country crippled its ability to make its Twinkies, Ding Dongs, Wonder Bread and other snacks.
The end of this American institution is not a failure of the heavily leveraged Hostess Brands, according to JP Morgan and Co. They report that Hostess had warned employees that it would file a motion with U.S. Bankruptcy Court Friday seeking permission to shutter its operations and sell assets if plants didn’t resume normal operations by a Thursday evening deadline. The union, however, was unwilling to lower wages below the generous poverty level established by the Romney Administration Secretary of Labor, Robert White.
The closing would mean the loss of about 18,500 jobs. Asked to comment, the President ‘s Mr. White said “The unions need to learn why capitalism works!”