Updating a story we blogged about last year, bankrupt Hostess Brands Inc. has found buyers for several of its snack brands. The New York Times recently reported that Hostess has agreed to sell the Twinkies, Ding Dong, Ho Ho, Snow Balls and Dolly Madison Zinger brands to two investment firms for a reported $410 billion.
The bidders for the snack brands, Apollo Global Management and Metropoulos & Company, also own Pabst Blue Ribbon and Vlasic pickles. The deal also includes five Hostess factories, according to the Times. The firms said they plan to begin snack distribution this summer.
“There’s a great consumer fan base that hasn’t declined,” Daren Metropoulos of Metropoulos & Company to the Times. “We saw a real opportunity to revitalize these brands, just with some T.L.C.”
The sale still requires the approval of the federal bankruptcy judge overseeing Hostess’ Chapter 11 case. A hearing is scheduled for this month to finalize the sale. Hostess filed for bankruptcy last fall after the company could not reach a deal with striking union bakers.
Chapter 7, Chapter 11 and Chapter 13 Bankruptcy
Chapter 11 bankruptcy allows businesses to continue to operate while looking for investors and buyers. Like a Chapter 11 bankruptcy, Chapter 13 and Chapter 7 bankruptcies help people by stopping collection attempts and offer them a fresh financial start.
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