In yet another turn to the strange saga of America's most iconic junk food-maker, Hostess, the now-defunct manufacturer of Twinkies and Ding-Dongs admitted Monday to routinely diverting workers' pension plan contributions into other company operational expenses.
According to the Wall Street Journal, the company – which abruptly announced that it was ceasing operations after unionized workers balked at post-bankruptcy wage and benefits cuts and began a strike – acknowledged that it had diverted money once intended for employee pensions into its general operating funds, as far back as August 2011.
The company was, at the time, teetering on the brink of bankruptcy, and made an announcement that it would no longer fund its pension plan. But company contributions were still coming and ended being used to help prop up the economically embattled bakery, even after Hostess declared bankruptcy in Jan. 2012.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
