110 companies bid for Hostess brands
November 30 , 2012
Hostess Brands, maker of some of the U.S.’s most popular food brands, could survive bankruptcy after its owner revealed on Thursday it is in talks with 110 potential buyers.
Hostess Brands, which makes the Twinkie, is due to liquidate itself following a labor dispute.
An advisor to Hostess said the bidders include at least five national retailers.
Hostess is also seeking final approval to shut down operations for good, which was tentatively approved last week.
However, the bakers union, which Hostess' second-largest union, has asked the judge to appoint an independent trustee to oversee the liquidation on the basis that the current management "has been woefully unsuccessful in its reorganization attempt".
Thursday’s development on the sale of the brands came as Hostess sought approval to give its top executives bonuses worth up to $1.8 million in total as part of its winding down.
The company says the incentive pay is required to retain the 19 corporate officers during the liquidation process, which could last a year.
Hostess expects to keep on about 3,200 employees out of 18,000 in order to help close its properties.