Hostess Brands, the maker of the popular get-fat guilty pleasure food Twinkies is shutting down its operations and filing for bankruptcy- again. Although it came out of bankruptcy protection only three years ago, it has filed again for it in the beginning of this year. At this point unfortunately, the worker’s have had enough and the union went on strike to protest wages and pension problems. On Thursday, the company decided, because of the significant lack of workers to keep the company running, to close down operations and sell the company to the highest bidder. This move will prove to be terribly bad news for the 18,500 employees that will instantly lose their jobs. However, from a business standpoint it is the most logical route to take. One of Hostess’ biggest creditors is actually the union’s pension fund. (which explains why they went on strike) By filing for bankruptcy protection, Hostess will not need to pay this $944.2 million dollars back and with selling its physical assets as well as its brand name, will be able to pay back a significant portion of the rest of its debts. This decision comes at a poor time, when America is trying to climb out of the recession, and will unfortunately contribute further to the already above average unemployment rate.

link to article: http://bbc.in/QiwRic