Walmart, Kroger Reportedly Among Hostess Bidders
The two retailers are among roughly two dozen bidders for the ill-fated maker of Twinkies snack cakes, Wonder Bread and other bakery products, Bloomberg reported. Some of the bids are for all of Hostess’ assets, while other bidders are only interested in individual baking facilities.
Kroger spokesman Keith Dailey declined to comment when contacted by Progressive Grocer, a sister publication to Convenience Store News. A request for comment to Walmart was not returned as of press time.
Hostess got the go-ahead to begin shutting down its operations right before Thanksgiving after talks between the company and the Bakery, Confectionary, Tobacco and Grain Millers Union broke down. The baker's union went on strike Nov. 9, which led Hostess to move forward with bankruptcy plans on Nov. 16. Hostess had asked its employees to agree to an 8-percent pay cut, a 20-percent increase in health care costs, closure of 10 to 12 plants and changes to pension and workday provisions, as CSNews Online previously reported.
Hostess received the final OK late last month to sell its assets and cut approximately 18,000 jobs. At one time, more than 100 companies were reportedly expressing interest in acquiring Hostess’ brands.
The liquidation sale of Hostess is expected to generate upwards of $1 billion.