chew on this
Posted by Brandchannel Staff on March 19, 2013 11:44 AM
After filing for bankruptcy protection in November and laying off its workers, Hostess has finally found buyers to pony up about $800 million for the majority of its baked goods brands.
According to Associated Press, a bankruptcy judge has approved the sale of Hostess Brands' iconic Twinkies, Ding Dongs and Ho Hos to two investment firms, Apollo Global Management and Pabst owner Metropoulos & Co., for $410 million. The judge also approved the sale of Hostess-owned Wonder Bread, Nature's Pride, Butternut, Home Pride and Merita bread brands to Tastykakes owner Flowers Foods, for $360M.
Beefsteak, a Hostess-owned regional bread brand, also was approved for a $31.9 million sale to Mexico's Grupo Bimbo, which surfaced early in the Hostess bankruptcy auction as a potential buyer and acquired Sara Lee's North American bakery business in 2010.Continue reading...
brand take over
Posted by Alicia Ciccone on March 12, 2013 05:08 PM
The world has been restored to its rightful order, folks. The snack-cake division of Hostess has accepted a buyer bid from Apollo Global Management Group and Metropoulos & Co. for $410 million.
Hostess was to conduct an auction later this week for snack brands including Twinkies, CupCakes, Ho Hos and Ding Dongs, however no competing bids were received by the deadline. Apollo, in partnership with veteran food executive Dean Metropoulos, has reportedly said that they are aiming to have the snack cakes back on shelves by summer, according to the Chicago Tribune.Continue reading...
brand take over
Posted by Mark J. Miller on February 28, 2013 12:45 PM
Some folks pay a couple of bucks for a loaf of bread. Some folks pay $360 million.
That’s how much Flower Foods is shelling out to take over the baking privileges of Wonder Bread, which has been on the block since Hostess declared bankruptcy last year.
As part of the deal, Flowers will also pick up Butternut, Home Pride, Merita and Nature’s Pride bread lines since there were no other bidders involved, Reuters reports. The plan had been to auction off the properties Thursday but no other interested parties stepped up.
According to Hostess' numbers, the six different bread brands brought in $1 billion in sales last year and Wonder was responsible for around half of that, the New York Post reports. That would be a sweet addition to the $3 billion Flower Foods already reportedly brings in.
Hostess’s Beefsteak bread line, on the other hand, does have at least two parties interested. The Wall Street Journal reports that Mexico’s Grupo Bimbo, the makers of Entenmann's, Sara Lee and Thomas', has bid $1 million more than the $30 million Flowers has offered for the line, so an auction will take place. Continue reading...
Posted by Mark J. Miller on January 16, 2013 10:26 AM
Lovers of Wonder Bread and Twinkies had heavy hearts back in November when Hostess Brands failed to resolve its labor woes and announced that it didn’t have enough cash to keep on baking and would have to shut down. Wonder fans didn’t have to wait long for their brand to find a new home, though.
Flower Foods, which owns such bread brands as Cobblestone Mill and Nature’s Own, has emerged as the lead bidder for six of the Hostess brands that were put on the block in November, for $390 million.
The bid came in two parts, the Associated Press reports: $360 million for Wonder, Nature’s Pride, Butternut, Home Pride, and Merita as well as $30 million for Beefsteak. It isn’t totally a done deal yet since the bankruptcy court will rule on the bidders later this month.
Twinkie fans, however, will have to wait a bit longer.Continue reading...
Posted by Shirley Brady on January 7, 2013 07:02 AM
Hostess is in talks to sell off bread brands, as makers of Thomas' English muffins and Tastykake snacks emerge as two of the bidders for Wonder Bread according to the Wall Street Journal.
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brands under fire
Posted by Shirley Brady on November 21, 2012 05:59 PM
As expected, following the failure of a court-ordered mediation at the 11th hour, Hostess Brands is moving ahead with liquidating the 82-year-old company and its assets, and laying off about 15,000 of its 18,500 employees. According to the company's statement today following the preliminary court hearing today:
Hostess Brands is winding down the Company after a nationwide strike initiated by the BCTGM that commenced on November 9th crippled its operations at a time when the Company lacked the financial resources to survive a significant labor action.
Among other provisions, the Court order allows Hostess Brands to return excess ingredients and packaging; provides liquidity through an amended debtor-in-possession financing agreement and consensual use of cash collateral; and authorizes the Company to implement a non-executive employee retention plan to ensure the Company has the necessary personnel to implement the wind down.
Hostess Brands said it intends to retain approximately 3,200 employees to assist with the initial phase of the wind down. Employee headcount is expected to decrease by 94% within the first 16 weeks of the wind down. The entire process is expected to be completed in one year.
The wind down was necessitated by an inflated cost structure that put the Company at a profound competitive disadvantage. The biggest component of the Company’s costs was its collective bargaining agreements that covered 15,000 of 18,500 employees.Continue reading...
Posted by Shirley Brady on November 20, 2012 05:02 PM
The Wall Street Journal is reporting that the president of the bakers union in court-ordered mediation with Hostess Brands said he's "not too optimistic" that a settlement will be reached or the company's liquidation plan (now adjourned to 11 a.m. EST on Wednesday) reversed:
In an interview Tuesday afternoon, Bakery, Confectionery, Tobacco Workers and Grain Millers International Union President Frank Hurt, who’s not attending the mediation being held in New York Tuesday afternoon, said he’s heard "not a word" about how the talks are going. But he doesn’t think a deal will be reached to head off the Twinkie maker’s liquidation because his members aren’t prepared to take the labor concessions Hostess says it needs to survive.
Will brand loyalists have more success convincing President Obama to nationalize Twinkies — or will Pabst ride to the rescue and save Twinkie the Kid? Stay tuned.
Update: The announcement that mediation failed came at 7:08 p.m. ET: "Hostess Brands Inc. announced today that a mediation today with the Bakery, Confectionary, Tobacco and Grain Millers Union was unsuccessful. The Company will have no further comment until a hearing scheduled for tomorrow at 11 a.m., EST, before the U.S. Bankruptcy Court for the Southern District of New York"
Posted by Mark J. Miller on November 19, 2012 04:46 PM
Urban legend has it that Twinkies have an endless shelf life, but the folks at Hostess Brands didn’t have to worry about that this weekend. After the announcement came Friday that the company was going to shut down, Twinkies and all of the other baked goods cranked out by the company flew off store shelves this weekend. And some of them started showing up on eBay at ridiculously high prices. A ten-count box of Twinkies was listed with an opening bid of $200,000.
That price should be coming down because now the news comes that Twinkies may get to keep appearing on store shelves for a while to come. According to Reuters, Hostess, its lenders and the unions representing its striking workers reportedly "agreed to start mediation hearings on Tuesday at the urging of a bankruptcy court judge. A hearing on Monday during which the bankrupt maker of Twinkies snack cakes and Wonder Bread was set to ask for permission to liquidate was quickly adjourned until Wednesday after the judge urged the parties to mediate in private." Production remains shut down, as Hostess noted on its business site.Continue reading...