One might think that a company that has run into bankruptcy would be approached cautiously by a potential buyer. Hostess Brands Inc., maker of such American dietary staples as Twinkies, Cupcakes, Ding Dongs, Ho Hos and Wonder Bread, may have been run into the ground by its current owners, but there are 110 potential buyers for the firm lined up waiting to fire up the ovens again.
That's what the attorneys for Hostess said in court yesterday. The company also said that at least five national retailers are included in the group of potential buyers. An attorney for Hostess said:
Not only are these buyers serious, but they are expecting to spend substantial sums.
The bankruptcy process has to proceed quickly though, or the Hostess brands' shelf lives could be seriously affected. There's only so much that hoarders and trivia buffs can do to keep the brand names alive. We noted earlier this morning that eBay is still getting plenty of action from sellers and buyers of Hostess products. That will keep the brands in the public view for a while, but a serious buyer will want to get the bakers working again as soon as possible.
The court yesterday approved $1.8 million in bonus payments for 19 executives provided the liquidation of the company meets certain targets. Hostess stopped paying a monthly contribution of $1.1 million into its retiree benefits fund over a year ago.
Filed under: 24/7 Wall St. Wire, Bankruptcy, Food