Twinkies saved after Hostess brands are sold for $410 million

Twinkies have been saved and will soon return! According to a recent article, Hostess Brands did not receive offers from any separate companies to buy Twinkies. Because of this, they will sell the brand to the joint venture of private equity firms Apollo Global Management and C. Dean Metropoulos & Company for $410 million.

This proposal began an auction process for other groups interested in buying the brand. CEO of Hostess Brands, Greg Rayburn, was said to have predicted that this auction process would reveal that there were many companies who were interested in the brand.

However, based on files with the United States bankruptcy court, Hostess Brands did not receive adequate offers to buy Twinkies until it was too late. Because of this, there will be no auction for the Twinkies brand.

The Wonder Bread auction was also cancelled because Hostess Brands did not receive any competing proposals. This is true for other major bread brands as well.

McKee Foods Corporation was stated as the leading bidder for the Drakes cakes brands (Devil Dogs, Yodels, Ring Dings, etc.) In addition, there will be an auction for this brand that will take place sometime in March.

The Miami Herald has reported that the spokesperson of Hostess Brands said that they have no comment about the lack of bidders who want to buy Twinkies. Apollo Global Management also had no comment when asked when the Hostess cakes will return to the market.
70% of the Hostess Brands’ production was affected last November after its workers went on strike. This forced the company to ask the bankruptcy court to approve the shutdown of its operations.

We often hear about large corporations going bankrupt. However, the same thing could happen to you. If you have found yourself in a state of financial crisis, do not hesitate to contact a dedicated Illinois business attorney to represent you and your needs.