Private Equity Cost-Cutting Makes Bakers Cry
Buyout firms should really avoid messing with nostalgia-shrouded companies. When they do, they run the risk of falling into an unsavory PR battle. At least that’s how things have played out with Brynwood Partners’ investment in Stella D'oro Biscuit Company. The 79-year-old Bronx company’s workers have been on strike ever since Brynwood cut its bakers wages and vacation days ten months ago. Their chant? “No Contract, No Cookies.” According to a story in yesterday’s NY Post, Brynwood is “slowly squeezing the life out of the city jewel by having inexperienced replacement workers produce poor quality cookies as they pursue their profits.”
11 May 2009•2 mins read
