The U.S. Bankruptcy Court for the Southern District of New York approved Wednesday an emergency interim motion from Hostess Brands to wind down its business and liquidate assets. Hostess and the Bakery, Confectionary, Tobacco and Grain Millers Union were unable to reach an agreement in a mediation meeting held on Tuesday. The Hostess wind down, in which 33 bakeries are closed and 18,500 jobs lost, is expected to take one year. Perella Weinberg is providing financial advice to Hostess.
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Hostess Brands Inc has received a “flood of inquiries” from a range of parties interested in buying several of its brands, the snack cake maker’s lawyer said on Wednesday. At a hearing in the U.S. bankruptcy court in White Plains, New York, the lawyer Heather Lennox of Jones Day said Hostess expects to find “stalking horse” bidders for some brands within a few weeks, with court-supervised auctions to follow.
Hostess Brands may not be done yet. The maker of Twinkies and Ding Dongs is expected to meet with its lenders and one of its bigger unions later today as it attempts to avoid liquidation. Private equity also appears interested in Hostess. C. Dean Metropoulos & Co., the PE firm that owns Pabst Brewing, said last week that it was considering making an offer for Hostess, according to press reports. Sun Capital Partners also confirmed it wants to buy Hostess.
Who will save Hostess Brands? That’s the question that’s been circulating among investors and media outlets. The 82-year old Hostess, which makes Twinkies, Ding Dongs, Ho Hos and Wonder Bread, is looking for a lifeline after filing with a U.S. bankruptcy court last week to go out of business. Hostess is firing more than 18,000 employees after a week long strike by its baker’s union. Adding to the doom-and-gloom is a notice on the company’s website that says, “Hostess Brands is Closed.“
strong>Hostess Brands Inc, the bankrupt maker of Twinkies snack cakes and loaves of Wonder Bread, is seeking a U.S. court’s permission to go out of business after failing to get wage and benefit cuts from thousands of its striking bakery workers.