Hostess to sell its brands to several buyers
Hostess Brands Inc. expects to sell Twinkies, Wonder Bread and its other brands of snack cakes and breads to separate buyers, the Irving, Texas-based company said in bankruptcy court on Friday.
According to The Associated Press, an investment banker testified that a potential buyer has emerged for the namesake Hostess brand, which includes Twinkies, Ding Dongs and Ho Hos, along with Dolly Madison cakes, which includes Coffee Cakes and Zingers.
The banker noted additional bids have been submitted for other snack cake brands and breads made at Hostess plants across the country. Sales could be completed by as early as mid-March.
About 30 plants could also be sold with the brands, the banker said. Six plants, several warehouses and a fleet of trucks are likely to be closed or scrapped as part of the liquidation process approved by U.S. Bankruptcy Judge Robert Drain in late November. The liquidation of assets is expected to generate an estimated $1 billion in revenue for Hostess Brands Inc.
Hostess, which operates a 370-employee bakery in Biddeford, declared bankruptcy in January. In response to its financial troubles, the company stopped paying into workers' pension funds, a decision that was not negotiated with its employee union and sparked a nationwide strike in early November.
The company fired 80% of its work force – about 15,000 employees -- in November.
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