Two investment firms have been chosen as the bidders to beat for the Hostess Brands snack cakes division that includes the iconic Twinkies and that is being auctioned off as part of the Hostess bankruptcy proceedings.
The two firms are Metropoulos & Co. and Apollo Global Management LLC. Known as “stalking horse” bidders, other firms must beat their $410 million bid to acquire the division.
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.
This is a cross-post from the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM).
In a desperate attempt to break the solidarity and resolve of striking BCTGM members across the country, Hostess Brands is falsely claiming that its decision to close three of its bakeries—St. Louis, Cincinnati and Seattle—is the result of the nationwide strike against the company by BCTGM members.
In fact, according to the company’s 1113 filing with the bankruptcy court earlier this year, as well as its last/best/final and non-negotiable proposal to its BCTGM-represented workers, the company was planning to close at least nine bakeries as part of its reorganization plan, although the company refused to disclose which bakeries it intended to close.
Workers at Hostess Brands—who in September overwhelming rejected a contract that cut wages and benefits by as much as 32%—began a strike today against the maker of Wonder Bread, Twinkies and other well-known baked treats. Hostess has imposed the terms of the rejected contract. Frank Hurt, president of the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM) says:
Hostess Brands is making a mockery of the labor relations system that has been in place for nearly 100 years.