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I am seeing many different sides of the story on every news outlet. Liberals instantly blame the management and conservatives point fingers at the unions. But few facts are really presented. Can pension obligations and high labor cost really strangle a company that has products in every grocery store, gas station, and minimart around the country?

What is the truth surrounding Hostess?

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I can't imagine what a meaningful, definitive answer would look like. What sort of evidence would you accept, either way? –  Oddthinking Nov 17 '12 at 1:48
Not an answer, but I heard on NPR the company claimed the union's year long strike is the reason they went under. –  Sam I Am Nov 17 '12 at 16:47
Placing blame isn't a function of this site. If you want to ask a question about some specific action, and whether it occurred, that would be on topic. –  DJClayworth Nov 17 '12 at 23:41
Come on. You had a company in long term trouble (two recent bankruptcies) and an argument between management and labor. One union was ready to give in, another wanted to call management's "bluff". Only it seem that management was serious. Trying to assign a single cause would be silly. –  dmckee Nov 18 '12 at 1:58
Close it as off topic then. –  user10316 Nov 18 '12 at 16:48
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closed as not constructive by DJClayworth, Oddthinking, Chad, Larian LeQuella Nov 18 '12 at 16:50

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1 Answer

The truth comes down to math and human emotion. There is a amount of income "N" that hostess wants. If they don't make N dollars, then running the business is not worth it to them. The value of N is a combination of wants and needs. Even if they don't "need" N they very well may not feel it's worth their time to make less. They are not slaves and you cannot force them to run a business that they feel is not profitable.

money = income - expenses
if(money < N)
    close business
    keep going
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Welcome to Skeptics! It's not yet clear what a fully referenced, definitive answer to this question may look like, but this is neither referenced nor definitive. –  Oddthinking Nov 18 '12 at 1:54
The referencing requirement is not some vague hope, it is a strong requirement because the point of this site is to sort out the truth with some kind of reliability. Jokes belong in the comments if they belong at all. –  dmckee Nov 18 '12 at 23:50
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