Hostess receives final approval to wind down

by Eric Schroeder
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WHITE PLAINS, N.Y. — Hostess Brands, Inc. received final approval today for its wind-down plan from the U.S. Bankruptcy Court in the Southern District of New York. The move paves the way for the Irving, Texas-based baker to wind down operations at 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes, 570 bakery outlet stores and the loss of 18,500 jobs.

According to the Associated Press, a financial adviser told the court today that Hostess, which suspended bakery operations at all plants on Nov. 16, has been in talks with 110 potential buyers for its brands.

“Not only are these buyers serious, but they are expecting to spend substantial sums,” said Joshua Scherer of Perella Weinberg Partners.

Although not mentioned by name by Mr. Scherer, companies that have been rumored to be in the mix for Hostess assets include Flowers Foods, Inc.; Grupo Bimbo S.A.B. de C.V.; McKee Foods Corp.; ConAgra Foods, Inc.; Sun Capital Partners, Inc.; C. Dean Metropoulos & Co.; and Hurst Capital LLLP.

In a Nov. 16 filing, Hostess said it hopes to complete the wind down and sale of its assets in approximately one year.

The filing said the “desired outcome” of the wind down would be to sell groups of assets that could then be operated as an ongoing concern. Doing so would result in the buyer assuming as many of the related administrative expenses and other claims as possible.

Plans already have been put in place by Hostess for 13 “wind-down periods,” which would span the entire one-year projected duration of the wind down, but operational and other cost projections only have been finalized for the first 13 weeks, the company said.
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By big mike 12/1/2012 6:42:21 PM
well the wind down of the assets of hostess i hope sun capital will buy it cuse in another article i have read they are the best buyers for hostess they want to keep the union wages and benefits just like the way it was that was my understanding and i hope they do @ Dennis yes that ceo did give him self a damm hefty raise and did he care of our fellow unions pensions no he did not hostess owes millions of dollars to us bctgm union members

By Dennis Reppond 11/30/2012 7:35:39 PM
So who ever buys pays both ways. Maybe they will pay me my lost vacation time or one of the CEO's who is getting a bonus will.