Inquirer Editorial: Twinkies, Ding Dongs, Ho Hos, and Zingers

If Hostess Brands dies, it will be bad news for cupcake lovers, but at least some of its baked products may survive.

The nearly century-old company last week announced plans to shut down its bakeries, including one in Northeast Philadelphia, and lay off 18,500 employees. But late Monday, Hostess and one of its major unions agreed to a last-ditch mediation session.

Hostess had planned to begin a bankruptcy liquidation sale in New York this week. It said it could take up to a year to sell its assets, which include the rights to such iconic brands as Twinkies, Hostess Cupcakes, Ring Dings, and Wonder Bread.

The news touched off a mad rush to buy the products while they remain on grocery shelves. Some snacks were being sold on the Internet at overblown prices.

For those in the Philadelphia region wondering why all the fuss over cream-filled golden sponge cakes, imagine if Tastykakes were no longer available. Nothing says Philly like a jelly-filled or butterscotch-iced Krimpet.

Hostess, based in Irving, Texas, was bogged down by debt, years of mismanagement, and escalating labor costs. It wanted to cut pension contributions by $75 million, slash wages, and reduce health benefits by 17 percent.

Some observers fault union leaders for refusing to budge from a contract the company said it could no longer sustain. But management also bears some responsibility. Amid Hostess' troubles, nearly a dozen executives got pay hikes of up to 80 percent.

Several would-be buyers have wasted no time in expressing interest in acquiring Hostess, or at least some of its popular brands. Among them is Sun Capital, the Florida firm co-headed by Philadelphia 76ers owner Marc Leder.

A company that once saw $2.5 billion in annual revenues may be a sweet deal for the right suitor. There may be good news yet for Twinkie and Ding Dong lovers.