US: Hostess Brands receives 110 potential bids
Hostess won permission from the US Bankruptcy Court for the wind down of its business and the sale of its assets
US baker and Twinkies owner Hostess Brands, which this week received court permission to wind down its business, has received interest from 110 potential buyers.
A spokesperson for the company told just-food today (30 November) 70 of those have signed disclosure agreements. "The have access to our data room and are actively contemplating whether they want to bid.
The company this week won permission from the US Bankruptcy Court for the wind down of its business and the sale of its assets. A New York judge approved the company's motion for the wind down after the firm was unable to reach an agreement on cost cuts during 11th-hour talks with the Bakery, Confectionery, Tobacco and Grain Millers Union (BCTGM).
Hostess asked for court approval to wind up the business after a BCTGM national strike that the company said had "crippled" the company.
The spokesperson said Hostess has been "surprised" and "very pleased" with the interest in its assets.
"The potential bids are coming from small region bakeries way up to national and even international interest. We have received some interest from overseas and we have received some enquiries about licensing the brands for overseas distribution, so we anticipate a very robust bidding process."
Applications for bids are due by 10 December. "This will be a rapid process", the spokesperson said.
Flowers Foods has been reported as a potential bidder for the business. The company this week extended a $500m loan facility as news emerged linking it as a possible buyer.
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