Can Union Backed Crowdfunding Rescue Hostess From Bankruptcy?
By Bill Frezza
By now you’ve heard at least two opposing versions of the Tale of the Tearful Twinkies. In the first, a great American brand was driven into bankruptcy by inflexible unions despite the heroic efforts of bold, albeit foolhardy, investors. In the second, greedy vulture capitalists sucked the lifeblood out of a mainstream American company, destroying the jobs of thousands of hard-working blue collar workers as executives feasted on lavish pay and bonuses.
The “Who killed Hostess?” debate is likely to go on for some time. Since neither facts nor reason have any impact on the cherished views of tribal America these days, I suggest another approach to settling the matter.
If union supporters who think they can do a better job running companies according to the rules of social justice—eschewing the outmoded fetish of elevating considerations like profit and loss to paramount status—why don’t they band together and bid on the Hostess assets?
Thanks to the Jumpstart Our Business Startups (JOBS) Act and the new crowdfunding rules that allow small investors to pool their money to support worthy companies, every union member in America now has a chance to chip in $100 each and show us how it’s done. Union allies in academia and the press can also get in on the fun.
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