Skip to comments.Hostess Brands confirms investment firms' $410 million offer is lead bid for Twinkies...
Posted on 02/01/2013 1:33:48 PM PST by Red Badger
NEW YORK Hostess has picked a lead bidder for its famous Twinkies.
The bankrupt Irving company said late Wednesday that it has selected a joint offer from two investment firms C. Dean Metropoulos & Co. and Apollo Global Management LLC as the lead bid for its Twinkies and other snack cakes.
Hostess says the two are offering to pay $410 million for the snack-cake business and five bakeries.
The "stalking horse" bid would set the floor for an auction process that lets competitors make better offers. A judge would have to approve any final sale.
After years of management turmoil and turnover, Hostess declared in November it was going out of business and selling its brands. The company already announced separate lead bidders for its other brands including Drake's cakes and Wonder bread.
The offer sets the stage for the return of Twinkies and other Hostess cakes to supermarket shelves under new management, which could mean stepped up marketing for the spongy yellow cakes with mysterious cream filling. Although supermarkets saw a run on Twinkies when news hit in November that Hostess was going out of business, the company's sales had been declining amid changing tastes and a lack of investment in marketing.
In bankruptcy proceedings, Hostess has stressed that it needs to move quickly in the sale of its brands to capitalize on the outpouring of nostalgia and media coverage prompted by its demise. The longer the cakes and breads are off shelves, the more people will become accustomed to eating cakes and breads by rivals, the company has said.
Still, Hostess cakes generated significant sales to the end. For its final year, Twinkies pulled in about $76.2 million, according to Hostess. Hostess Donuts brought in $384.6 million and CupCakes brought in $138.1 million.
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Are you sure? The NLRB is still sitting
I should’ve run a truckload across the border when I had the chance- they never stopped production in Canada.
I should open an ebay store then- the retail price here is $3-$3.50, and as a bonus they’re fresh.
Any chance you’d try baking your own bread? Its not all the difficult and it’s way better than store bought.
Should add that we started with a bread machine and expanded after we became experienced.
When the kids were growing up, before bread machines were popular, we would make our own bread but we still bought Wonder bread for sandwiches.
I see.. so it was MANAGEMENT that killed the company, not those union goons who refused to accept a reasonable offer.
Sorry, but GGG only pertains to the historical legacies of cultures. ;’)
That's why America had to re-elect Baraq. 4 years wasn't enough for MooseChelle to work her magic and transform them into specimens with "fabulously toned arms".
Might be a bad investment based on all the hoopla surrounding the situation. Any idea of how many Twinkies were being sold on an annual basis? More of a nostalgia item for those of us born in the ‘50s-’60s. Of course, if I was a business genius I wouldn’t have so many concerns about finances as things fall apart around us.
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