I have to say that Hostess sold 323 million Twinkies in the last
12-month period, and had sales of 2.5 Billion in 2011, so it's not that there were no sales. (Ref: The Hostess Liquidation: A Curious Cast Of Characters As The Twinkie Tumbles, Submitted by Tyler Durden on 11/16/2012 10:18 -050)So it has to be the cost structure.
There were also two articles in The Wall Street Journal (17 Nov 2012, pages A1 and A16). The upshot was that it was work rules as much as anything, plus pensions, that overwhelmed Hostess. The Teamsters had agreed to the cuts, but the Bakers balked, and time ran out. I don't doubt that Hostess was prepared for this outcome, given the history.
But there was a critical note in one of the two WSJ articles, that the Twinkie brand and recipes portfolio would be sold as part of the liquidation, to raise money to pay creditors.
Given that 323 Million Twinkies were sold per year, yielding billions in sales revenue, someone will buy this. Like the Bimbo Group that was trying to buy Hostess. What they will *not* buy is Hostess the company, or any of its obligations.
Wonder if any Bakers Union people will get jobs in the new company.
Joe Gwinn