Boy, oh boy, do you have to admire the gutsy, live by the seat of your pants business decisions of some company like Hostess which hopes to come back from Chapter 11 bankruptcy by pinning all their hopes on new some product. The Irving, Texas based company is no less than $1 billion dollars into major league debt problems due to declining sales for Wonder Bread as well as Twinkies and their other traditional products. With just half a billion in corporate assets including the office equipment, machinery and the trucks, the company is operating on a thin life-line of financial support of just a $75 million last ditch operating loan, only hoping to continue producing products and not shut their doors forever. The best answer that Hostess has to all of this high tension business drama is some bold new business decision to start producing chocolate creme-filled Twinkies. Wow. That’s real guts.
Corporate executives usually earn pretty good salaries. I’m not sure how much Hostess pays theirs. But, I sure bet all of the investors and creditors in Hostess are very happy to have him at the helm, keeping the company afloat with brilliant business strategies such as chocolate creme filled Twinkies decision. How can a scheme that brilliant possibly fail?
Usually, CEOs earn their pay because of their brilliance and their sheer willingness to make some bold business decisions. In all of the history of American business, this chocolate creme-filled Twinkie business decision ranks as a real milestone.