NEW YORK (AP) - The makers of Thomas' English
muffins and Tastykake snacks are emerging as the two of the bidders for
Wonder Bread and other Hostess bread brands as the company tries to sell
off its assets under bankruptcy-court oversight, a newspaper reported
Saturday.
The Wall Street Journal said Hostess Brands Inc.
could reveal as early as next week that Flowers Foods Inc. and Grupo
Bimbo SAB are in discussions to acquire the bread brands, which also
include Nature's Pride. The report said the brands could command $350
million.
Grupo Bimbo's brands include Arnold breads, Thomas'
English muffins and Entenmann's cakes. Flowers Foods Inc.'s brands
include Nature's Own breads and Tastykake snacks.
Hostess sells Twinkies, Ding Dongs and Ho Hos,
along with Dolly Madison cakes, which includes Coffee Cakes and Zingers.
Hostess also sells Devil Dogs, Funny Bones, and Yodels under the
Drake's brand.
Hostess, which is based in Irving, Texas, announced
in November that it was shutting down its business and selling its
bread, snacks and cakes brands along with its 33 bakeries and other
operations.
The company's demise came after years of management
turmoil and turnover. Workers said the company failed to invest in
updating its snack cakes and breads. Hostess filed for its second
Chapter 11 bankruptcy in less than a decade last year, citing steep
costs associated with its unionized workforce.
The company was able to reach a new contract
agreement with its largest union, the Teamsters, but the bakers union
rejected the terms and went on strike Nov. 9. A week later, Hostess
announced its plans to liquidate, saying the strike crippled its ability
to maintain normal production. In 2011, the company's revenue was $2.5
billion.
Hostess declined to comment, as did Grupo Bimbo's
U.S. division, Bimbo Bakeries USA. Bimbo's parent company is
headquartered in Mexico. A message left with Flowers Foods, which is
based in Thomasville, Ga., was not immediately returned.
Hostess said in bankruptcy court proceedings in
December that it was narrowing down the bids it had received and that it
expects to sell off its snack cakes and bread brands to different
buyers.
Hostess said in December that it expects to file
binding bids for many of its brands this month, followed by a four-week
auction process to allow competing bids. Closings for many brands could
come as soon as mid-March, according to Joshua Scherer of Perella
Weinberg Partners, which is advising Hostess.
An attorney for Hostess said in court in December
that 1,100 employees had been retained to shut down plants and perform
other tasks as it winds down its operations. The liquidation of the
company will ultimately mean the loss of 18,000 jobs, not including
those shed in the years leading to the company's failure.
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