Hostess comeback not all that sweet for some
The changing dynamics of the economy and marketplace can leave a bitter aftertaste.
It was just seven months ago when panic buyers, convinced that there soon would be no more to be had, were snatching Hostess Twinkies off the shelves.
The victim of severe financial distress, Hostess Brands had filed bankruptcy and decided to liquidate its assets. Among those assets were the various brands Hostess produced, and the buyers, a couple of private equity firms, now are producing a number of old Hostess brands, including the beloved Twinkie.
They're billing it as "the sweetest comeback in the history of ever."
That's probably overplaying it a bit. But Twinkies, Ho Hos, Ding Dongs are all back, and the producers are milking the nostalgia theme for all it's worth.
Actually, these brands were never in danger of not returning. Market demand never waned, even as Hostess Brands ran itself into the ground with bad management decisions and costly union contracts.
The new owners of the old brands aren't burdened by those legacy costs and are looking forward to operating profitably, maybe even very profitably.
Twinkies' old owners and the people they employed won't be making the same sweet comeback. Casualties of the process of creative destruction, they're being forced to find a new way to make a living.