Hostess' Iconic Brands Expected to Survive
NEW YORK -- Hostess Brands Inc. said today it is currently in talks with 110 potential buyers for its famous sweets, including Twinkies, CupCakes, Ding Dongs, Ho Hos, Devil Dogs, Wonder Bread and Donettes.
According to the Associated Press, the suitors include at least five retailers, such as supermarkets, and a financial advisor.
Although Hostess declared bankruptcy, the potential suitors will not be able to purchase the company's brands for a discount. Potential buyers are expecting to spend substantial sums, Joshua Scherer of Perella Weinberg Partners told the news outlet, adding that the buyers are "serious."
Hostess boasts more than $2 billion in sales per year.
The company is currently seeking approval from the U.S. Bankruptcy Court in the Southern District of New York in White Plains, N.Y., to "wind-down" its operations, a process which includes the quick sale of its brands. In court, Hostess claimed that a quick sale is necessary to capitalize on the large amount of press currently being given to its bankruptcy.
"The longer these brands are off the shelves, the less they are going to be valued," Scherer said in bankruptcy court, the news source reported.
Hostess' bankruptcy means the loss of about 18,000 jobs.