where's the cream filling?

Hostess Drew on Pension Funds to Cover Operating Costs

Hostess Drew on Pension Funds to Cover Operating Costs

Photo: Scott Olson/Getty Images

Oh, Hostess. Apparently as the snack-cake maker skidded toward oblivion, the company scrapped pension contributions and used money previously earmarked for employees' retirement funds to cover operating expenses. Which, as we all now know, didn’t quite work out as far as keeping Twinkies rolling off the production line and workers working are concerned. (The Wall Street Journal says that the decision to end pension contributions was what set the stage for the standoff between the company and its unionized employees.) Rerouting pension contributions isn’t necessarily illegal, but it’s still pretty scummy. [WSJ]

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