On March 11, 2013 Bloomberg reported that Hostess has not received any competing bids for its snack cakes and breads.
Hostess received no other bids; however, three other companies have expressed an interest to Hostess about purchasing their snack cakes.
Hostess creditor Silver Point Capital submitted a letter of intent to Hostess bankers to purchase the snack cakes. Hurst Capital a hedge fund company also wanted to make an offer. Also, Grupo Bimbo is the Mexican baking plant behind Entenmanns, and they want a piece of the snack cake company.
Hostess announced its bankruptcy in November 2012. Hostess said that they were looking for a starting bid of over $400 million. There was a joint offer made by C. Dean Metropoulos & Co. and Apollo Global Management LLC (APO), for the Hostess brand cake which includes, Twinkies back in January.
The offer from C. Dean Metropoulos and Apollo Global Management gave fans hope that they would start seeing Twinkies on store shelves. Since there are no other bidders, the auction canceled.
C. Metropoulos and Apollo Global Management were the only qualified bid received by the deadline.
The Hostess lawyer said in court papers, filed on Monday, in U.S. Bankruptcy Court 'in White Plains", NY “accordingly, pursuant to the bidding procedures order; no auction conducted, and the buyer is the successful bidder.”
Apollo and Metropoulos made a joint offer of $410 million for the Hostess snack cake which includes: Twinkies, CupCakes, Ding Dong and Ho Hos, five bakeries and equipment with some other assets.
Hostess formerly known as Interstate Bakeries Corp. withdrew from an early bankruptcy under the control of a firm buyout Ripplewood Holdings LLC.
Under the agreement Apollo and Metropoulos, will acquire Hostess, Dolly Madison, Mini Muffins, Zingers and Suzy Q’s. On Feb. 11 Hostess, won bankruptcy court approval to hold auctions for their brands, which included the popular Twinkie.
A sale hearing for the highest best bidder will be on March 19. Thus far, there is only one bidder which is Apollo and Metropoulos.
Mark Semer who is the spokesman for Metropoulos did not immediately comment on the court filing.
Charles Zehren is the spokesmen for Apollo, declined to immediately, comment.