The Hostess Company Foreclosure Case

The closure of “The Hostess Company” was a shocking action that affected around 18,000 employees all around U.S. This company was popular because of the famous product that they used to produce like the Twinkie and Wonder Bread. The issue that involved the company and make them close was a financial and operational mismanagement that take them to bankrupt, because of the issue the company became to have debts, lost of the market and declination of its sales. The company became to have this type of problem nearly a decade ago.
What basically went wrong with this company were the bad decisions made by the CEO and managers of the company at the moment to make important decisions such as, the creation of new products that fail in the market, bad financial and economics decisions and the quality of it products became to be different. There is an important issue that also impacts the company sales a lot and that it’s that the taste of the …show more content…
The pro`s that the closure of the company generated for the management position were; avoid another fail of their decision by the management, avoid future sue made by any person or organization, also the opportunity to sell the company at a good price. The Con`s of the closure were, leave the path free for the closer competitors, the impact in the economy of the country because of the jobs that they liquidated. For the Unions position the pro`s were, that they wont be having any problems to get pay, if another company bought the actual company they might be able to by hired again and negotiated an agreement. The con`s were, the fired and closure of the company, the louse of contracts between the company and the union, the operating and financial problems of the company might affect the employees to get paid and others minor problems that this people might also faced that are related to the main