6at4 Business Report: Good news for A.C.; Bad news for Twinkie lovers

January 10, 2012 2:28:49 PM PST
A good day for casinos in Atlantic City, but a bad day if you're a fan of Twinkies!

Twinkies in trouble?
Hostess Brands, the maker of Twinkies, is getting all too familiar with bankruptcy. The Wall Street Journal was the first to report the company is preparing to file for bankruptcy protection sometime this week. This time, hostess is facing a cash crunch, high labor costs, and soaring prices for sugar, flour and other ingredients. The company is no stranger to Chapter 11; back in 2004 the company filed for bankruptcy protection as sales took a hit with America shifting to low-carb foods.

Pay freezes for bankers?
The days of big pay bumps on Wall Street may be over for some. Sources are telling Bloomberg that wall street's biggest firms are considering freezing compensation levels for some junior bankers. Credit Suisse, Goldman Sachs and JP Morgan are flirting with the idea. Junior bankers will still get their regular annual salary increases, but bonuses will probably be lowered to keep total pay flat from the year before. All the firms are cautious to keep the pay flat, because if its rivals aren't planning similar moves, junior bankers could leave.

Atlantic City Casino revenue up
A long losing streak is over in Atlantic City. Casino's posted a monthly revenue increase of 4.2% in December marking the first uptick in New Jersey gambling halls in three years. For the year, though, Atlantic City casino revenue was down almost 7% from 2010. However, the year-end increase is a good sign that consumers have more disposable income to spend.

Powerball prices going up
The Wednesday night drawing for a $54 million jackpot will be the last time you can play Powerball for just $1. Starting January 15, 2012, Powerball will undergo changes that its organizers say will lead to bigger jackpots with better odds of winning. Read More.


Load Comments