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View Diary: Private equity-owned Hostess blames striking workers as it liquidates (263 comments)

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  •  IIRC, and there would be people eager to correct (2+ / 0-)
    Recommended by:
    CwV, BYw

    me if I'm wrong, the private equity group that bought Hostess, in typical Bain fashion, bought the company and then put into place requirements for hefty consulting contracts from Hostess that took the company from being on the edge to having huge payments that they couldn't make unless they cut costs, which were worker salaries, updating equipment and pension payments.  They also rewarded the company management for their help in plundering the company.

    •  To add.... (1+ / 0-)
      Recommended by:
      ColoTim

      ...A private equity firm would NOT want to see Hostess go into bankruptcy, even if they took ridiculous fees.  They invested equity which is now worthless, in claim behind the DIP financing that is funding the asset sale, and the secured and unsecured creditors.  In short, they are screwed.   The debt holders control the show, and since Hostess was in BK since January have been the invisible hand behind all this.

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