Twinkies fans rejoice! Hostess is not going anywhere anytime soon.
According to the Associated Press, Hostess Brands Inc. said Thursday that it is in talks with 110 potential buyers for its iconic brands, which include CupCakes, Ding Dongs, and Ho Hos. The suitors include five national retailers such as supermarket chains, big-box retailers, and national packaged food makers.
''Not only are these buyers serious, but they are expecting to spend substantial sums,'' said Joshua Scherer of Perella Weinberg Partners, who also said the process has been "so fast and furious" that Hostess hasn't been able to make the calls seeking buyers it previously intended.
Hostess is currently seeking approval in U.S. Bankruptcy Court in the Southern District of New York in White Plains to "give its top executives bonuses totaling up to $1.8 million as part of its wind-down plans. The company says the incentive pay is needed to retain the 19 corporate officers and ''high-level managers' during the liquidation process, which could take about a year," AP reported.
The wind-down process includes quick sales of Hostess brands including Devil Dogs, Donettes, and Wonder Bread.
"Hostess had already said last week that it was getting a flood of interest from potential buyers. The company has stressed that a quick sale is necessary to capitalize on the outpouring of nostalgia sparked by the company's liquidation," the AP reported.
''The longer these brands are off the shelves, the less they're going to be valued,'' Scherer said in a court Thursday. Ap reported, "Last week, he had noted that it was a 'once-in-a-lifetime opportunity' for buyers to snap up iconic brands without the burden of debt and costly labor contracts that would come with the purchase of Hostess as a company. Although Hostess sales have been declining over the years, they still come in at between $2.3 billion and $2.4 billion a year."
Hostess is waiting for approval for its wind-down process, which will result in the loss of 18,000 jobs.
