Hostess CEO: bad management decisions, union killed company - 13abc.com Toledo (OH) News, Weather and Sports

Hostess CEO: bad management decisions, union killed company

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The CEO of Hostess Brands isn't trying to sugarcoat the demise of the company.

CEO Gregory Rayburn says management made some terrible decisions, including a 300% pay raise for the former CEO while employees took a 30% pay cut.

Ultimately, Rayburn says, it came down to the bakers union, one of a dozen unions represented at Hostess. The union refused to sign a deal with the company and went on strike.

"They simply rejected the contract and went on strike. But I would say that there's bad history. I came in March, but I think there were some poor management decisions. I think the company was over-leveraged, didn't make capital investments. So there's plenty of blame to go around."

More than 18,000 workers, over a 100 locally, could face unemployment. Rayburn says the company had heard from interested parties who may buy up some of the Hostess brands.

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