Perhaps it was the fact their factory workers were unionized, and demanded a pay raise and their factories were shut down.
^ Mostly, the only problem that I have with this is that it ignores the fact that the largest union was alright with the contract from Hostess. One of the other unions rejected the contract. Hostess went to the bankruptcy court to force the contract on them and the union went on strike as a result.
(Said court seems to be trying to keep Hostess alive if I heard the news correctly.)