Corporate News: Twinkie’s New Owners Will Shun Union Labor
The Twinkie returns, but Metropoulos & Co and Apollo Global Management LLC who purchased the Hostess Brand said it will not be hiring union workers. Chief Executive Dean Metropoulous purchased the Hostess Brand with Apollo for roughly $410 million dollars. In January 2012, Hostess Brands Inc. sold its brands and its factory plants because it filed for bankruptcy protection. They were forced to file for bankruptcy as the Bakery, Confectionery, Tobacco Workers & Grain Millers International Union called for a work stoppage after new labor terms were imposed.
Since Hostess didn’t have enough workers they sold off the Twinkie brand and 11 plants to Metropoulos and Apollo. Chief Executive Dean Metropoulous said he will invest roughly $60 million in capital for plant renovation and to hire workers. They plan on opening less plants because they aren’t using union labor but feel if they increase efficiency they will be successful.
This is important because a well known brand snack like Twinkie will have a considerably large market of consumers craving the classic treat. I remember specifically my first semester at Baruch, I bought a Twinkie and documented it as one of the last Twinkies I will ever see. It’s a big deal and I will definitely purchase the snack when it comes out. Unfortunately for Union labor they will be out of jobs, unless Metropoulos and Apollo run into problems involving unskilled or lack of labor.