Hostess -- the company responsible for expanding waistlines across the globe with Twinkies, Ding Dongs, and Sno Balls -- will attempt to pull itself out of a second bankruptcy in four years by asking employees to take an eight percent pay cut. According to CNBC, Hostess has extended its final offer to the unions representing half of the individuals employed by the company.
"We have a path to emerge, but it's a difficult one and it's a painful one," CEO Greg Rayburn explained. "It's painful for the employee because it requires wage concessions and pension concessions. They have been through this wringer once already."
In addition to the internal cost cuts, Hostess intends to sell off its Merita bread brand, which has already generated interest from potential bidders. Should the company need to free up even more money, internal documents suggest that additional asset sales and layoffs could be a possibility.
Now that the pay cut proposal has been finished, it's up to the International Brotherhood of Teamsters to agree to the conditions. The IBT is set to vote on the matter this September. When asked if the unions contributed to the company's many woes, Rayburn was quick to shoot down these allegations.
"I don't think unions bring down companies," the CEO explained. "In Hostess' case, there is plenty of blame for everyone."