FinalCut: Over Two Dozen Bidders to Vie for Hostess
ABF Journal illustrator Jerry Gonzalez shares his depiction of the barrage of bidders — including Wal-Mart Stores, Kroger Co., Grupo Bimbo and Alpha Baking — vying for the assets of Hostess Brands as part of the company’s liquidation.
Hostess Brands’ assets are attracting a barrage of bidders — more than two dozen, Bloomberg reported, including Wal-Mart Stores, Kroger Co., Grupo Bimbo and Alpha Baking. A portion of the bids will be placed for the assets of the company while others will be only for bread or cake businesses and others will be for the separate products or buildings currently owned by Hostess, the article said.
In late November, U.S. Bankruptcy Judge Robert Drain in the U.S. Bankruptcy Court in the Southern District of New York granted final approval for Hostess Brands liquidation and upcoming sale of its brands and assets, a related Bloomberg article said. Perella Weinberg Partners’ Joshua Scherer said at the time that at least six of the potential buyers have lined up banks to aid in the financing of the Hostess brands. Judge Drain approved the liquidation after the mediation between Hostess and the Bakery, Confectionery, Tobacco and Grain Millers Union failed. The shutdown of the company will follow with the liquidation of Hostess’ assets. The result costs over 18,000 jobs. Fifteen thousand employees were laid off immediately. The rest will aid in the liquidation process. Going-out-of-business sales began at the company’s retail outlets. The wind down means the closure of 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes and 570 bakery outlet stores throughout the United States.
The company said its debtor-in-possession lenders have agreed to allow the company to continue to have access to the $75 million financing facility put in place at the start of the bankruptcy cases to fund the sale and wind down process, subject to court approval.