Twinkie Back! Iconic Cake Set Return To Store Shelves Under New Ownership

Twinkie Back! Iconic Cake Set Return To Store Shelves Under New Ownership
World
Like Us On Facebook
Like Us On Facebook

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 on Friday 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. 

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.

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.

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.

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.

Jordan Shepherd | Elite.

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Jordan Shepherd

Jordan Shepherd comes from a strong writing background, originally residing in Grand Rapids, Michigan. Now living in New York City, his life experiences from backpacking across Europe to deep sea diving and nearly losing his life to a Great White Shark, Jordan Shepherd has a lot to say, and never pulls any punches.

More In World

World Alexia LaFata

Tinder Date Turned Rape: Man Allegedly Sexually Assaults Woman After Meeting On App

After a seemingly innocent mutual right-swipe on Tinder, a date between an unsuspecting woman and a 22-year-old massage therapist turned violent. According to the East Baton Rouge Parish Sheriff’s Office in Louisiana, this date was the victim’s first encounter with Jacob Hirsch Witz, or “Jake,” a man she’d met through Tinder. The two planned to rendezvous at […]

Also On Elite

Women

50 Shades Of Not-So-F*cked-Up: 5 Reasons Psychology Says BDSM Isn’t Bad After All

After the “50 Shades of Grey” trailer debut, many women (men, as well, believe it or not) were left in a sex-infused frenzy over the highly-anticipated February 2015 release. However, the movie has become subject to criticism for propagating the rape culture that seems to be prevalent in our society, as well as for silently encouraging […]

Humor

There’s No Un-Seeing This Grandma Twerking On Top Of A Car (Video)

It’s not very often that I’m left speechless. Thanks to my years online, I’ve become gradually desensitized to most of the world, and I’ve always thought saying that something “speaks for itself” is just another way for a writers to say they don’t feel like doing their jobs. But this video changes things a little […]

Music

How Last Night’s BET Awards Felt A Bit Like A Family Reunion

Last night, the city of Los Angeles hosted the 2014 BET Awards. Chris Rock hosted the award show and presented a collection of accolades and performances that crossed a range of entertainment fields. We also saw a glimpse of young musical talents via BET’s “Music Matters” campaign and celebrated the lives of those we’ve lost. […]