Hostess : Forbes weighs in on who is to blame
by grimgraphix - 11/19/12 9:41 PM
Management dropped the ball. They concentrated on doing everything EXCEPT making a product that lots of people wanted to buy. Yes, people bought Twinkie's and HoHo's and Wonder Bread... but not enough people bought them. Then there is the questionable strategy of loading on debt to keep the company working at loosing money.
Yes, it's the old story of a company that refused to admit they made a product that was unprofitable. Maybe Hostess is where all those out-of-work US car executives went after they got their butts kicked by Japanese imports in the 1970's and 80's?
We won't go into how management gave themselves huge raises right before asking everyone else to take wage and benefit cuts. That practice seems to be the swan song of every failed company.