Hostess Cut Wages Then Collapsed

After its first bankruptcy filing in 2004, Hostess workers accepted wage cuts reaching 30 percent to help keep the bakery alive. In August 2011, Hostess stopped making union pension contributions and used wages earmarked for pensions to fund operations, calling the suspension temporary. It never restored that money and filed for bankruptcy again in January 2012. In 2013, a court approved the $410 million sale of most of its snack-cake business, while 19 executives overseeing the liquidation received approval for $1.75 million in bonuses.

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