NEW YORK — Hostess Brands, Inc. is narrowing down the bids it has received for its brands and expects to sell its snack cakes and bread brands to separate buyers, Joshua Scherer of Perella Weinberg Partners told the U.S. Bankruptcy Court for the Southern District of New York today. Mr. Scherer is an investment banker representing Hostess as part of the Irving, Texas-based company’s liquidation.
According to the Associated Press, Mr. Scherer told the court that a likely suitor has emerged for the Hostess brand, which includes Twinkies, Ding Dongs and Ho Hos, along with Dolly Madison cakes, which includes Coffee Cakes and Zingers. He said another viable bid was made for Drake’s cakes, which includes Devil Dogs, Funny Bones and Yodels. That bidder also wants to buy the Drake’s plant in Wayne, N.J., Mr. Scherer said.
Additional bids have been submitted for Hostess’ bread brands, which include Wonder and Home Pride, Mr. Scherer said, adding Hostess expects to file binding “stalking horse” bids for many of its brands in January, followed by a four-week auction process to allow competing bids. Closings for many brands may come as soon as mid-March, Mr. Scherer said.
Hostess, which began winding down its operations late last month, said it would retain about 3,000 workers to shutter plants and perform other tasks. An attorney for Hostess said in court today that figure was down to about 1,100 employees, according to the AP