Good Food Makes a Comeback

Twinkie fans can breathe a sigh of relief as its owners Hostess Brands Inc. revealed the iconic cake is likely to return to shelves in the coming months.

The company’s other products, including Wonder Bread and Devil Dogs, are also set to return to market but probably not under the same owners as Twinkies.

Hostess said in bankruptcy court that it is narrowing down the bids it received for its brands and expects to  sell off its snack cakes and bread to separate buyers.

They're back: Twinkie fans can breathe a sigh of relief as its owners Hostess Brands Inc. revealed the iconic cake is likely to return to shelves in the coming monthsTwinkie fans can breathe a sigh of relief  as its owners Hostess Brands Inc. revealed the iconic cake is likely to return  to shelves in the coming months

The testimony came from an investment banker  for Hostess, which is in the process of liquidating.

A likely suitor has emerged for the namesake  Hostess brand, which includes Twinkies, Ding Dongs and Ho Hos, along with Dolly  Madison cakes, which includes Coffee Cakes and Zingers, said Joshua Scherer of  Perella Weinberg Partners.

He said another viable bid was made for  Drake’s cakes, which includes Devil Dogs, Funny Bones and Yodels. That bidder  also wants to buy the Drake’s plant in Wayne, N.J., which Scherer said is the  country’s only kosher bakery plant.

Additional bids have been submitted  for its  bread brands, which include Wonder and Home Pride. Hostess  expects to file  binding ‘stalking horse’ bids for many of its brands in  January.

Sell off: The company's other products, including Wonder Bread, pictured, and Devil Dogs, are also set to return to market but probably not under the same owners as Twinkies The company’s other products, including Wonder  Bread, pictured, and Devil Dogs, are also set to return to market but probably  not under the same owners as Twinkies

Those filings would be followed by a four-week auction process to allow competing bids.

Scherer said the auctions could be very  active for some of the brands, given the number of parties that have  expressed  interest. Sales could be completed by as early as mid-March.

About 30 plants could also be sold with the  brands, Scherer said, with six plants, several warehouses and a fleet of trucks  likely to be closed or scrapped.

Hostess has hired a firm Hilco to act as a  sales agent for those additional assets; the firm will also give  Hostess a $30  million loan to maintain operations during its  liquidation, which is expected  to take about a year.

Hostess, based in Irving, Texas, has said  potential buyers include major  packaged food companies and national retailers,  such as big-box  retailers and supermarkets.

Factory line: Workers prepare Hostess Twinkies for packaging at the Interstate Bakeries Corporation facility in IllinoisWorkers prepare Hostess Twinkies for  packaging at the Interstate Bakeries Corporation facility in Illinois

The company has stressed it needs to  move  quickly in the sale process to capitalize on the outpouring of  nostalgia  sparked by its bankruptcy.

To begin winding down its operations late  last month, Hostess had said it  would retain about 3,000 workers to shutter  plants and perform other  tasks.

On Friday, an attorney for Hostess said in  court that figure 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 to  the company’s failure.  CEO Greg Rayburn, who was hired as a restructuring  expert earlier this  year, is earning $125,000 a month.

Narrowing bids: Hostess said in bankruptcy court on Friday that it's narrowing down the bids it received for its brands and expects to sell off its snack cakes and bread to separate buyersHostess said in bankruptcy court on  Friday that it’s narrowing down the bids it received for its brands and expects  to sell off its snack cakes and bread to separate buyers

The company’s demise came after years of  management turmoil and turnover, with workers saying the company failed to  invest in updating its snack cakes and breads.

Hostess filed for its second Chapter 11  bankruptcy in less than a decade this January, citing steep costs associated  with its unionized workforce.

The company was able to reach a new contract  agreement with its largest union, the Teamsters, the bakers union rejected the  terms and went on strike Nov. 9. A week later, Hostess announced its plans to  liquidate, saying the strike crippled its ability to maintain normal production.

Although Hostess sales have been declining  over the years, they still clock in at between $2.3 billion and $2.4 billion a  year.

When asked how much the brands are expected  to fetch from buyers, Scherer said he would rather not say.

Attribution: Daily Mail

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About thecommonconstitutionalist

Brent is not a scholar. He’s not an author or speaker (yet). He hasn’t published a book nor does he write articles for magazines (yet). He has no advanced literary degree or pedigree (never will). He is just an American who writes and shares what interests him. He cares about the salvation of this country and a return to its Constitutional roots. He believes in God, country and family.
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