It has been reported that rivals are likely to rescue the popular sponge treat known as Twinkies from the selling of Hostess Brands.
The Guardian today reported that other companies have expressed an interest in bidding for pieces of Hostess, including highly recognised names such as Twinkies. There are unconfirmed reports that Flower Foods and Metropoulos are the most likely suitors.
On Friday (Nov 16th) Hostess Brands Inc. announced that it is winding down operations and has filed a motion with the U.S. Bankruptcy Court seeking permission to close its business and sell its assets, including its iconic brands and facilities. Bakery operations have been suspended at all plants. Delivery of products will continue and Hostess Brands retail stores will remain open for several days in order to sell already-baked products.
The Company reports that its board of directors authorised the wind down of Hostess Brands to preserve and maximize the value of the estate after being ‘crippled’ with costs brought on by its unionised workforce.
“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said Gregory F. Rayburn, Chief Executive Officer. “Hostess Brands will move promptly to lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidders.”
In addition to dozens of baking and distribution facilities around the country, Hostess Brands will sell its popular brands, including Hostess®, Drakes® and Dolly Madison®, which make iconic cake products such as Twinkies®, CupCakes, Ding Dongs®, Ho Ho’s®, Sno Balls® and Donettes®. Bread brands to be sold include Wonder®, Nature’s Pride ®, Merita®, Home Pride®, Butternut®, and Beefsteak®, among others.
The wind down means the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the United States.