Twinkies Creators Bankrupted Hostess Shelled Out Bonuses Top Level Executives
Top level executives at the bankrupt company Hostess are being paid bonuses as the company looks to go into liquidation this according to ABC News.
Hostess the makers of popular American snacks like Twinkies and Ho-Hos have given top coporate officials bonuses in the wake of the company's demise.
Confectionary organization fired 18,000 employees on Thursday as part of a plan to liquidate the company. A federal judge in White Plains, New York approved the paying 19 Hostess executives bonuses totaling $1.8 million.
The company has had offers from at least 110 companies who want to purchase sections of Hostess. With news of bonuses for executives also came word that the company will not be able to pay for retirement benefits for some of their former employees.
CEO Gregory Rayburn according to the Associated Press is on $125,000 a month but will not receive any bonuses.
Paul Carroll who has work for Hostess for 34 years was very upset when news broke that the company's handlers were offered such lucrative bonuses.
"Anybody's got a reason to be upset who lost their job if there handing out large amounts of money," Paul Carroll told ABC News.
Hostess Inc. said that the bonuses were designed to keep top talent from leaving before winding down what's left of the company.
ABC said that Hostess was given interim approval for its wind-down last week, which gave the company the legal protection to immediately fire 15,000 union workers. Hostess said last week it will retain about 3,200 employees "to assist with the initial phase of the wind-down," which is expected to last about a year.