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Published: Saturday, 12/22/2012 - Updated: 1 year ago

Hostess Brands narrowing purchase bids down, expects to sell individual brands separately

ASSOCIATED PRESS
Hostess Brands Inc. said in bankruptcy court Friday that it’s narrowing the bids it received for its brands and expects to sell off its snack cakes and bread to separate buyers. Hostess Brands Inc. said in bankruptcy court Friday that it’s narrowing the bids it received for its brands and expects to sell off its snack cakes and bread to separate buyers.
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NEW YORK — Twinkies, Wonder Bread, and Devil Dogs are likely to return to shelves in coming months, but probably not under the same owners.

Hostess Brands Inc. said in bankruptcy court Friday that it’s narrowing the bids it received for its brands and expects to sell off its snack cakes and bread to separate buyers.

A likely suitor has emerged for the namesake Hostess brand, which includes Twinkies, Ding Dongs, and Ho Hos, along with the Dolly Madison cakes brand, which includes Coffee Cakes and Zingers, said Joshua Scherer of Perella Weinberg Partners. He said another viable bid was made for Drake’s cakes, which include Devil Dogs, Funny Bones, and Yodels.

Additional bids have been submitted for its bread brands, which include Wonder and Home Pride. Hostess expects to file binding “stalking horse” bids for many of its brands in January. Those filings would be followed by a four-week auction process to allow competing bids. Mr. Scherer said the auctions could be very active for some of the brands, given the number of parties that have expressed interest.

Hostess announced its plans to liquidate in mid-November. The company's demise came after years of management turmoil and turnover, with workers saying the firm failed to invest in updating its snack cakes and breads.

Hostess had more than 250 employees in northwest Ohio at bakeries in Northwood and Defiance, stores in Toledo and Northwood, and in deliveries.



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