01 Mar 2013
Hostess Brands, the maker of some 30 iconic American bakery products such as Wonder Bread, Ho Hos, Ding Dongs, and Twinkies, declared itself in liquidation and its assets for sale last November. As an adviser to the Teamsters union,
Harry Wilson (MBA 1999), who had been a key player in the Obama administration's rescue and restructuring of General Motors, spent months trying to save the bankrupt company from dissolving. But the bakery workers' union ultimately refused to accept a proposed deal.
"Given the historical under-investment and historical problems with the company," said Wilson, "it was really hard to put a deal together. Despite that, all the creditors, the management team, the board, and 11 of the 12 unions either approved the deal or agreed not to oppose this deal. And it was one union with bad information and bad judgment that really led a strike that catalyzed the destruction of this company and 19,000 jobs" (In The Loop, November 19, 2012).
Class of MBA 1999, Section G