After an unsuccessful court-ordered effort at federal mediation came to naught, Hostess last week got a judge’s permission to begin liquidating its assets.
That means the potential loss of such iconic brands as Twinkies, Wonder Bread, Ring Dings and Yodels, among others.
Not to mention 18,500 jobs — in 33 bakeries, 570 outlet stores and 565 distribution centers.
Which would be profoundly sad for a lot of people, needless to say.
Then again, it comes with the territory: Hostess’ fall demonstrates the way a free market — the cornerstone of the US economy — works.
And there’s logic to it.
The immediate cause of Hostess’ shutdown is the nationwide strike that began Nov. 9 by the Bakers Union, which represents 30 percent of the company’s workforce. As US District Court Judge Robert Drain noted: “Many people, myself included, have serious questions as to the logic behind the strike.”
But the larger problem is that Americans’ eating habits have changed over the years, turning away from junk-food snacks.
Which means that while the supply may still be there, the demand no longer is.
No wonder Hostess has been struggling, with two bankruptcy filings over the past decade.
Fact is, in a free market, companies rise or fall based on their ability to sell their products, without the need for government bolstering. (Actually, Hostess indirectly enjoyed corn subsidies, given the sugars it used, and still had market troubles.)
It’s unlikely the company’s many iconic brand names will go the way of the dodo.
Hostess says it’s received numerous inquiries from other firms interested in picking up specific company assets.
So they’ll be back, in one form or another.
But if not — well, like it or not, that’s the way the cookie sometimes crumbles.
Or, in this case, the cupcake.