Originally Posted by berto62
They've probably been gutting the company for along time to boost short term stock value (ie not reinvesting in the plant, securing new markets etc etc.)
You never close a profitable, well run business down out of spite for the union. Anybody who believes that is a moron. They've probably been planning this along time and are now using the strike as an excuse. I am no tax expert but business owners can claim additional tax breaks for going **** up, especially if it is due to labor strife, as well as stiffing people they owe money to. You know, just good business, nothing personal.
On the contrary.
There is an oversupply of capacity in the baking industry, lots of competition. Also a changing dietary profile of the country, we're more inclined to eat healthy and sales have been sagging for hostess. Kinda makes updating the plant with new equipment harder.