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By the time you read this, you will have been bombarded by the news that Hostess Brands Inc. (which has been in U.S. Chapter 11 bankruptcy protection since January) sought court permission on November 16 to go out of business. This potentially will affect 33 U.S. manufacturing plants, 565 distribution centers, 570 bakery outlet stores, and a large majority of its 18,500 member unionized work force (and likely a large number of its non-unionized work force).

While that is the story that is being told, I don't think it is the more important 'story behind the story'. A story I have yet to see discussed at any length.

The reason given for the decision taken by Hostess Brands by its CEO is that "we do not have the financial resources to weather an extended nationwide strike". Hostess Brands is reported to have annual sales in the order of $2.5 billion.

My view of the 'story behind the story':

• all the news is about 'Hostess going bankrupt', few are talking about the Phoenix that is likely to 'rise from the ashes' of this event. I see it as highly that buyers will come forward to purchase the Hostess brands, and re-establish all or a substantive part of the business. Twinkie lovers should not despair, as Twinkies are likely to be on the retail shelves again soon;

• in a restructuring, the Hostess Brands union workers are going to have to face the harsh reality that they will not all be re-employed, and that those that are re-employed likely will face quite different pay packets and benefits than they have enjoyed to date;

• it is not impossible that the Union leaders involved are meeting as I write this to work through a 'back-down' proposal. Hostess Brands can always revert to further negotiation with them if it elects to do that - although I doubt that will happen;

• for completeness, while I think it very highly unlikely due to 'precedent setting' and other reasons, it is also possible that the U.S. Federal Government could decide to step in with some form of financial assistance, given the brand recognition enjoyed by many of the Hostess Brands products and their longevity - Twinkies is a 'bit of an American icon'; and,

• 'the story behind the story' is that what happened this past Friday at Hostess Brands is likely not to be an isolated event in America and other developed countries. This as I think it likely that many Main Streeters, unfortunate as it may be, will be forced going forward to face employers who simply can't afford to pay them their current fully benefited wage rates.

You might think not only about the foregoing, but also why the media broadly has not picked up on what may happen in the aftermath of the decision made Friday by Hostess Brands. The New York Times Deal book Blog has picked up on the re-structuring possibilities. You might want to read As Labor Talks Collapse, Hostess Turns Out Lights.

I wrote the foregoing on Saturday morning. Already on Sunday morning I am finding that information on possible bidders is coming forward. See Will Twinkies be reborn through new Mexican ownership?, which in addition to Mexican company Grupo Bimbo mentions American companies Con Agra, Flowers Food, and McKee Foods as possible suitors.

Again, for me the Hostess Brands and Twinkies development is symptomatic of what may come as labour rates in developed countries are forced down by developing country labour rates. I believe that is the real story here, and that we are going to watch that story unfold over the next months and years.

Topical References: Twinkies Maker Hostess to Go Out of Business, from The Fiscal Times, from Reuters, November 16, 2012 - reading time 4 minutes. Also read:

• As Labor Talks Collapse, Hostess Turns Out Lights, from Deal book the New York Times, Michael J. De La Merced and Steven Greenhouse, November 17, 2012 - reading time 3 minutes; and,

• Will Twinkies be reborn through new Mexican ownership?, from NBC Latino, Addrian Carrasquillo, November 17, 2012 - reading time 2 minutes.