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30. Re: Out of the Blue Nov 29, 2012, 15:03 Cutter
Beamer wrote on Nov 29, 2012, 11:39:
I don't get your first point. They cannot get unemployed immediately - it's more or less impossible to sell this company without these guys. They're the ones that have actually been running it - they're needed to run it in the time being and whoever buys it will want to spend considerable time speaking with them as part of due diligence. There's more or less no way to move forward with this company without having many of these people in place.

Wrong. First off it's going to be a fast sale and everyone knows it. And you don't need these guys. It's why the union is asking for an independent trustee and they're right to do so. The CEO brought on board for this is making $125,000 a month? That's ludicrous by any stretch. That would pay the salary of 40 bakers for that company.

Hostess is a fantastic example of a poorly run company, of a product no one wanted anymore, of a company crippled by pension payments, and of greedy management calling everyone greedy but themselves.
But you cannot sell Hostess without overpaying its key people to stick around. Notably, the CEO doesn't have to be one of those people. Odds are whoever is buying doesn't have any interest in talking to him.

2.4 billion in sales a year is a product no one wants? Crippled by pension payments of a paltry 1 million per month? No, the only thing you got right is that is was poorly run and raided by a bunch of white collar crooks which is always the case. The working man isn't the problem, never has been, never will be.
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