Many, many cats hide when company comes, including mine! He just disappears under the bed - in fact if he hears a knock at the door he's gone! There is not a whole lot you can do to change the behavior and dragging him out could make it worse. Some cats will eventually get used to certain people and come out for them if they visit.

You could try seeing if you can get him used to seeing a bag and not being so scared by laying the bag out in a room and then putting treats nearby. Then very slowly move the bag a teeny bit. Do this over the course of several weeks moving the bag more and more each time. He may adjust that way.
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Smile, it will make them wonder what you are up to!

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