Flowers Foods put their bid to purchase Hostess Wonder bread along with several other brands of Hostess breads. The Hostess brand has been bankrupt since November 2012, and has stopped all productions of cakes and breads since that time.
Hostess has had a lot of financial struggles throughout the years and decided to go out of business and close their plants in November 2012. This decision to close the plant left 18,000 Hostess employees out of work.
However with Flowers Food $360 million bid for Wonder bread, Nature’s Pride, Butternut, Home Pride and Merita may soon be your toast of choice again for breakfast, or part of your lunch sandwich.
The sale of Hostess Wonder Bread would need approval from the bankruptcy court on March 19, before the sale would be finalized.
Flowers Foods plans to finance this deal through a cash and debt. However in bankruptcy court on Monday, Hostess union The Bakery, Confectionary, Tobacco Worker and Grain Millers International Union objected to the sale of the breads, stating that Flowers Foods “has not committed to preserve a single job.”
The Bakery, Confectionary, Tobacco Worker and Grain Millers International Union said though the bid may be something that works for the company’s lenders, it does nothing for the rights of the workers as they would not be protected.
Hostess has opening bidders known as a “stalking horse,” for their snack cakes such as Twinkie. The joint offer from two investment firms Metropoulos & Co. and Apollo Global Management LLC are the lead bidders for Twinkies. According to Hostess CEO Greg Rayburn he says he expects the auction to be “wild and wooly”.
Mckee Foods is the lead bidder for Drake’s cakes, which include Devil Dogs, Funny Bones and Yodels. These bids are not final as competitors have till the mid of March to complete deadlines for a bid.
Although the deal for Hostess Wonder bread was approved on Thursday, it will still take several months before the deal is approved by regulators and finalized.