Duo of investment firms win auction for Hostess products
The red tape is slowly being peeled away, and the path is being cleared for the Twinkie machine to come roaring back to life.
The world has been bereft of the classic junk food, as well as its Hostess-made brethren including Ding Dongs, Ho Hos, and CupCakes, since the company shut down last November following flagging sales and a crippling employee strike. Since then, the wheels have been in motion to find a buyer for the company, which was recently named the number one food brand that refuses to die, and the joint team of Metropoulos & Co. and Apollo Global Management recently put in a $410 million bid for the company.
That was only the first step, though, as the company still needed to be auctioned off, with that $410 million bid as the “floor.” According to the AP, however, no companies stepped up to the plate to offer a competing bid, so those two won by default.
Hostess has actually been in this situation before, as Wonder Bread, another one of its products, was sold to Flowers Foods without a competing bid.
The matter should be resolved once and for all in bankruptcy court on March 19, and soon afterward we can expect to begin seeing those gleaming little snack cakes on grocery store shelves once again.