What Killed Twinkies

Gary Keller, a Hostess driver for 16 years, carries the last items of his final delivery at a Hostess Brands Bakery Outlet store in Peoria, Ill. Photograph by Daniel Acker/Bloomberg

There are plenty of culprits in the recent bankruptcy and closure of Hostess Brands, including weak management, short-sighted labor unions, and poor judgment by investors. But the real reason Hostess is going belly up is a problem that’s been brewing for more than 20 years: The company completely failed to innovate.

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