As part of the bankruptcy process, the divisions of Hostess Brands are being auctioned off and, says David B. Durkee, international president of the Bakery, Confectionery, Tobacco Workers and Grain Millers ( BCTGM ), “We are working diligently with potential new buyers on behalf of those workers affected by the ongoing process.”
The success of the new companies is dependent upon a turn-key restart of operations, which our highly skilled members are more than able to provide.
One of the identified bidders for the bread divisions, known for its Wonder Bread and other brands, is Flowers Foods, makers of Tastykakes. Flowers was designated by the bankruptcy court as the “stalking horse” bidder. That means other companies interested in bidding on the bread division must offer a higher bid than Flowers.’ Says Durkee:
Whether the new owner is Flowers or another company, our goal is to work with interested bidders in both the bread and snack cake divisions to preserve jobs and the legacy of these timeless snack cakes and breads. We’ve worked with Flowers on occasion in the past and would hope to continue a positive working relationship should they become the new owners.
The auction is set for Feb. 28 and approval of the sale will be made by March 5. Auctions for other divisions, including snack cakes, which include the iconic Twinkies brand, will follow.
In a letter to local and state lawmakers and members of Congress in every location with a Hostess Brands plant, updating them on the progress of the bankruptcy proceedings, Durkee wrote:
We remain hopeful that the highly skilled BCTGM members will be seen as an asset by the new owners and look forward to the next phase for these iconic brands that past generations have grown up with.
A history of mismanagement and debt drove Hostess into collapse, despite efforts by the workers to strengthen the company.