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View Diary: Inside the Hostess Bankery (260 comments)

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  •  PE capital in action (0+ / 0-)

    Thanks for this vivid view of what PE capital is all about. Loading up a company like Hostess with all that debt and billing huge amounts for management services that only lead them to liquidation is what PE capital is all about. It isn't about saving companies or turning them around unless one qualifies what turning them around means in PE language. Turning them from from a boring but safe company all the way to bankruptcy.

    Of course Hostess needed to get with the times in their offerings, but a huge overhand in debt is going to keep product development funding at a minimum so they ended up introducing losers.

    $25,000 a year as a Union employee with no Pension? In 1979, I was earning a inflation adjusted $56,616 as a unskilled commercial construction Labor. In real dollars not much less than what a Apple College Educated employee makes today or the proposed wages for experienced people at Hostess.

    We can't expect any economic recovery if we are setting wage standards that were marginally liveable 30 years ago for today's worker. $25,000 should be the  minimum wage level . When businesses are  built around the  abuse of the minimum wage they are also cutting their own necks because those customers will never buy branded goods. They will buy brand x.

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