In what is developing into the best news for Twinkie fans since November of 2012, the investment turnaround group headed by Dean Metropoulos has teamed up with Apollo Global Management to buy the bankrupt Hostess Cakes brands. But, wait a minute!! ......even though Metropoulos has a much higher than average success rate with turn around efforts of other bankrupt companies, he's still a billionaire, and the Left won't like this AT ALL. Aside from the fact that the unions are what broke Hostess to begin with, thereby shooting themselves in the foot and costing themselves 18,000 union jobs, Metropoulos is not at all likely to hire many, if any of them back. That would be going down the very road that almost brought the end to Twinkie The Kid's career last November. Metropoulos has run major food companies in the past, to include Pabst Brewing Co, Chef Boyardee, Pam cooking spray maker International Home Foods, Vlasic Pickles, Log Cabin Syrups, just to name a few, so he is not just a your garden variety billionaire. He is a billionaire with know-how in the industry.
Hostess Cakes and snacks were previously married in production to the iconic American brand of Wonder Bread, Butternut, Home Pride and other bread brands, but the bread part of the company has been sold separately to Flowers Foods. That deal is under review by the Obama Justice Department in order to "overcome hurdles", according to Hostess Brands CEO Greg Rayburn.
Turning around struggling or bankrupt companies is what investment groups do. That is what Bain Capital successfully did with companies such as Staples. They take the risk, and it's all private money, not taxpayer money. It doesn't always work, but the success ratio for these investment groups serves to prove that in many cases, if not most cases it DOES work. Of course the benefits derived from bringing bankrupt companies back to life are much more than just the potential for profit to the investors. These formerly defunct companies now provide jobs that simply didn't exist before. But we all know how the Left and the Liberal Media feel about Bain, Billionaires and Buyouts. The devil incarnate.
For now however, we can all welcome back an American institution. And the American public will now decide whether it thrives or dies. Not the unions.