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>>>> their downfall probably had more to do with a change in social perception that they couldn't do anything about.

Agreed. When I was growing up, I ate a LOT of these snack foods and regularly had twinkies in my bag lunch I brought to school.

Nowadays, there's a much better emphasis on nutrition and making sure kids avoid getting obese.

Back in 2005, the same thing happened to Krispy Kreme. They flooded our city with stores, but within a few years, they were all gone. There were a victim of the health food craze taking off.

As much as I hate to see them go, it's a good sign.




I don't hate to see them go, and not for health reasons.

This is what is supposed to happen when a company can not perform efficiently with the resources it has. I realize the strike killed this company, but it was severely wounded and bleeding already. No guarantee it would have survived much longer, strike or no strike.

In these situations, it is good for the company to fold. Sell off it's assets and let another business that can make better use of these resources do so.

If a company is squandering resources, that is a drag on the economy. Much better to let someone new withe better ideas and better execution come into play. Bankruptcy and Liquidation lets this happen. It's a good thing.

If a company can pick up these resources and use them more efficiently, they will hire people. And maybe all the things that Hostess fell short on with the union contract will not be a problem for a company that can execute efficiently.

While that is certainly not the only possible outcome, I think it is a likely one.

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The Krispy Kreme situation is quite different. They had an accounting scandal that actually caused them to contract, in addition to the health craze reasons that many people assume.

http://www.nytimes.com/2005/08/11/business/11place.html?_r=0

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This is off-topic, but I really hate the term "health craze." People caring about something does not make it a "craze." When people put on their seat-belt, we don't say they have a "safety craze." For the same reason, we should stop using the term "health craze."

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Donuts in moderation are fine. Seat-belts in moderation are not a good idea.

That's why your analogy doesn't really work.

I said "craze" because the anti-carb mood is somewhat of a fad, so I think the word "craze" is perfectly suited.

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In Krispy Kreme case it was in fact a "craze" - the Atkins "eat no sugar" diet wave, followed by South Beach diet wave, followed by the derivatives. All of these have subsided now, but they were nothing less than a sudden craze. I was one of many how jumped on the bandwagon only to jump off it few months later.

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