Hostess Brands said in bankruptcy court last week that it's narrowing down the bids it received for its brands and expects to sell off its snack cakes and bread brands to separate buyers, according to an article from USA Today.
Potential buyers include major packaged food companies and national retailers, such as big-box retailers and supermarkets. Irving, Texas-based Hostess has stressed it needs to move quickly in the sale process to capitalize on the influx of consumer nostalgia sparked by the liquidation announcement.
A viable bid has been made for the namesake Hostess brand, which includes Twinkies, Ding Dongs and Ho Hos, as well as Dolly Madison cakes, which includes Coffee Cakes and Zingers. Another promising bid was made for Drake's cakes, which includes Devil Dogs, Funny Bones and Yodels. Additional bids have been submitted for its bread brands, which include Wonder and Home Pride. Hostess plans to file binding "stalking horse," or initial, bids for many of its brands in January, followed by a four-week auction process to allow for competing bids.
The company said it would retain about 3,000 workers to shutter plants and perform other tasks as it winds down operations. Last week, an attorney for the company said in court that number was down to about 1,100 employees. The liquidation of Hostess ultimately means the loss of about 18,000 jobs, not including those shed in the years leading up to the company's failure.
Hostess filed for bankruptcy in January, its second time in bankruptcy court since 2004. The company's demise came after years of turnover and management turmoil, with many accusing the company of not updating its product lines.