Sales of Hostess Brands Approved by Judge
Bankruptcy Judge Robert Drain has approved the sale of the sweet cake business formerly operated by Hostess Brands, clearing the way for Twinkies and other brands to return to shelves.
Hostess Brands Inc. is selling the Twinkies, Ding Dongs and Ho Hos brands to Apollo Global Management and Metropoulos & Co. for $410 million. Metropoulos has said it hopes to have the snack cakes back in stores by this summer.
The judge also approved the sale of Hostess bread lines to Flowers Foods. Flowers will obtain Wonder Bread, Nature’s Pride, Butternut, Home Pride and Merita as part of the $360 million deal.
The sale of Beefsteak, a regional bread brand, to Grupo Bimbo for $31.9 million also was approved.
In a statement to the media, David B. Durkee, international president of the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM), noted:
Throughout this arduous process, our membership has believed that the key to these brands’ survival was strong, new ownership and a sustainable business model. Indeed, new ownership has signaled a clear intent to accelerate this process and return products back to the shelves as soon as this summer. We share the enthusiasm, energy and passions exhibited by new ownership and believe our highly motivated and skilled workforce will serve as indispensable partners in the seamless re-opening of factories.
In this way, new ownership can proudly demonstrate their commitment to preserving middle-class jobs while delivering on their promise to consumers.
