Bankruptcy judge clears way for Hostess to close, sell brands
Twinkies, Ho Hos and Wonder Bread are up for sale now that a bankruptcy judge cleared the way for Hostess Brands Inc. to fire its 18,500 workers and wind down its operations.
At a glance
Hostess, founded in 1930, filed for Chapter 11 bankruptcy protection in January for the second time in less than a decade. Its predecessor company, Interstate Bakeries, sought bankruptcy protection in 2004 and changed its name to Hostess after emerging in 2009.
The union pointed to steep raises executives were given last year, as the company was spiraling toward bankruptcy.
A banker working for Hostess said at Wednesday's hearing that brands typically fetch the equivalent of about a year's sales when sold off in liquidation. He said Hostess' sales are in the range of $2.3 billion to $2.4 billion a year.
Banker Joshua Scherer, of Perella Weinberg Partners, said interest in Hostess' brands has ranged from regional bakers to major national retailers.
“This is a once-in-a-lifetime opportunity to get iconic brands separate from their legacy operators,” Scherer said.
The company's announcement Friday that it would move to liquidate its business prompted people across the U.S. to stock up on their favorite Hostess treats.
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