Gloucester Daily Times
---- — To the editor:
It’s no surprise that the leveraged buyout specialists who took over the bakery company that made Hostess products had no intention of trying to improve the company, but would destroy it because the sum of the parts would be worth more than the whole.
They leveraged the company’s assets, taking out huge loans to allow them to take excessive management fees while saddling the company with huge debt payments. That caused them to file Chapter 11 bankruptcy, asking the workforce to give back hard-won benefits over the years to keep their jobs while paying off debts for pennies on the dollar, a modus operandi of leveraged buyout operators.
It wasn’t long before they filed Chapter 7 bankruptcy to liquidate and in the process asked the judge to allow their “hard-earned” bonuses to be paid.
While 18,000 workers are thrown out of work, many who worked there their entire lives; the judge allowed the bonuses.
The Bankruptcy Boys came out smelling like a rose. Such is the plight of America’s workforce in the age of corporate greed!
SAUL P. HELLER