Hostess went bankrupt due to vulture capitalists and wall street. Investment companies bought Hostess then burdened the company with insurmountable debt.
The unionized workforce took pay and benefits cuts and they had layoffs. Hostess executives saw a massive increase in their compensation. The CEO got a 300% increase.
“In 2011, Hostess earned profits of more than $2.5 billion but ended the year with a loss of $341 million as it struggled to pay the interest on $1 billion in debt. This year, the company sought bankruptcy protection, the second time in eight years. Still, the CEO who brought on the latest bankruptcy got a raise while Hostess demanded that its workers accept a 30 per cent pay and benefits cut.”