Hostess is coming back to a supermarket near you
Thousands of people flocked to grocery stores when Hostess announced that it would no longer make its iconic desserts following its bankruptcy. However, the company has now announced that its popular Twinkies brand, along with other favorites, may return to the shelves as early as summer following the approved sale of its snack cakes to new owners.
Hostess recently announced its plans to sell its infamous snack cakes - including Twinkies, Ding Dongs, Ho Hos, Snowballs and Dolly Madison Zingers - to two investment firms, Metropoulos & Co. and Apollo Global Management. The companies previously submitted a joint offer of $410 million as a "stalking horse" bid at auction, but Hostess informed a U.S. Bankruptcy Court that it no longer wished to hold the auction because no other qualifying bids were received, according to The Associated Press. The company originally sought bankruptcy law protection under Chapter 11 of the Bankruptcy Code, but was forced to convert to Chapter 7 liquidation due to failed talks with union leaders. However, it had hoped to receive stronger bids for its brands than it actually did.
"It's not that we lacked interest," Gregory Rayburn, Hostess chief executive, said in an interview with the New York Times. "Other bidders felt that they could not top the price."
Following the announcement of the sale, Metropoulos & Co. CEO and founder Dean Metropoulos said he was pleased with the purchase and has plans to get the brands back in stores soon.
"Our family is thrilled to have the opportunity to reestablish these iconic brands with new creative marketing ideas and renewed sales efforts and investment," said Metropoulos. "We look forward to having America's favorite snacks back on the shelf by this summer. We are also ecstatic to bring jobs back to many cities across the country."
Although the companies have provided no concrete details, analysts predict that they will keep the familiar Hostess name and may also stock a wider variety of stores with the snack cakes, according to the Times.