US: Hostess deal faces block by government objection
Flowers Foods' US$360m offer for the Wonder, Nature's Pride, Merita, Home Pride and Butternut brands, includes 28 bakeries
Hostess, which last year went into liquidation following a bakery union strike that paralysed its operations, agreed a deal late last month to sell its Wonder, Nature's Pride, Merita, Home Pride and Butternut brands, includes 28 bakeries and around 28 depots, to Flowers Foods for US$360m. The transaction now requires approval from the bankruptcy court overseeing Hostess' liquidation.
Attorney Preet Bharara, however, filed an objection in the US Bankruptcy Court in Manhattan this week, claiming the deal frees the buyer of liabilities and limits the government's ability to regulate.
"The proposed sale order, as currently drafted, would diminish or eliminate the government's ability to enforce generally applicable police and regulatory statutes and regulations, and diminish or eliminate the buyer's and debtor's obligations to comply with environmental, health and safety laws," Bharara said in the filing.
A hearing for the proposed transactions is scheduled for 19 March.
Hostess could not be reached for comment at the time of going to press.
- Rabobank's early view on Brexit impact on food
- How local model protects Nestle - interview
- Brexit sparks uncertainty for UK food - comment
- Quorn Foods confident in prospects - interview
- How to win in Australian gluten-free cereal
- Nestle names new CEO
- Brexit – Live reaction from food industry
- Brexit – UK farmers warn of food price spike
- Brexit – US confirms commitment to TTIP with EU
- Brexit – How France's food market will be hit
- Frozen Bakery Products Market by Type, Distribution Channel, & by Region - Global Trends & Forecast to 2020
- Top Trends in Snacks, Confectionery, and Desserts; Exploring consumer and innovation trends in key categories
- Singapore Food and Drink Report Q3 2016
- Fast Food in India
- Country Analysis Report: Saudi Arabia, In-depth PESTLE Insights