| | | Twinkies go on sale again, with something missing
By Aimee Picchi
MSN Money
excerpted
The snack cakes may taste as sweet, but lost on the road to their return are thousands of jobs.
As Twinkies first went on sale over the weekend at Wal-Mart (WMT) and are now hitting store shelves widely on Monday, fans will be testing whether the cream-filled cakes offer the same sweet taste, amid reports of recipe tinkering and deep freezing.
Twinkies are returning after private equity firms Apollo Global Management (APO +1.44%) and C. Dean Metropoulos & Co. bought several of the old Hostess snack cake brands. But one thing about Twinkies is clearly missing as the brand comes back: thousands of jobs.
Before Hostess Brands went bankrupt last year, the company employed 18,500 people. Now, upon its revival, only 20% to 25% of those jobs will be returning, CNNMoney reports, citing an estimate from IBISWorld. Even though the new company bought five bakeries, it plans to use only four, the report said.
A spokeswoman for the new venture cautioned against comparing employment numbers between the pre-bankruptcy company and the new Hostess because the private equity companies didn't buy rights to all Hostess brands, CNNMoney noted.
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