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How Job-Killing Republican Economic Philosophy Took Down the Twinkie

robertscribbler

Let’s get this straight. Hostess was in trouble long before vulture capitalist hedge funds and equity firms came to roost over the carcass of one of America’s signature brands. The shift, by much of the American public, away from junk foods to more healthy nutrition, combined with Hostesses’ failure to diversify and leverage its brand put Hostess in a tough situation. But that didn’t kill Hostess. And it wasn’t the workers, whom hedge funds controlling Hostess blamed for the company’s downturn. It was the hedge funds and equity firms who decided their own enrichment was more important than responsibly transforming this iconic American corporation.

By 2009, Hostess had declared bankruptcy and was seeking a way to re-establish itself through changing and challenging market conditions. It was then acquired by the private equity firm Ripple Holdings and hedge funds Silver Point Capital and Monarch Capital. These firms then took company capital…

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About Nicholas Maithya

I am a writer focussing on disruptive technology, Fintech, Big Data and Internet of Things, Online Marketing trends, and investments. When I am not writing about these, I am probably in the gym working out, out and about with family, watching the news (basically business/technology) or soccer. That's why I do sometimes cover soccer-related stories.

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