April 10, 2013

It’s the end of the lines for Hostess

A bankruptcy court judge OKs sales of the company’s last major cake and bread brands Tuesday.

Hostess Brands Inc. won approval Tuesday to sell off the last of its major cake and bread brands, bringing the total proceeds from its liquidation to about $860 million.

A U.S. Bankruptcy Court judge in New York approved the two deals, said Hostess spokeswoman Anita-Marie Laurie.

McKee Foods Corp., the maker of Little Debbie snack cakes, is buying the Drake’s business for $27.5 million, gaining Devil Dogs, Ring Dings, Yankee Doodles and other products.

United States Bakery Inc. is buying Sweetheart, Eddy’s, Standish Farms and Grandma Emilie’s bread brand, plus four bakeries and 14 depots for $30.9 million.

The two buyers had been lead bidders for their purchases.

Irving, Texas-based Hostess filed for Chapter 11 protection in January 2012 after years of turmoil. It announced in November that it was going out of business and selling its brands after a nationwide strike by its bakers union crippled operations.

Flower Foods Inc. earlier bought five Hostess bread brands for $360 million. Other cake brands were sold to two investment firms for $410 million.

Were you interviewed for this story? If so, please fill out our accuracy form

Send question/comment to the editors




Further Discussion

Here at PressHerald.com we value our readers and are committed to growing our community by encouraging you to add to the discussion. To ensure conscientious dialogue we have implemented a strict no-bullying policy. To participate, you must follow our Terms of Use.

Questions about the article? Add them below and we’ll try to answer them or do a follow-up post as soon as we can. Technical problems? Email them to us with an exact description of the problem. Make sure to include:
  • Type of computer or mobile device your are using
  • Exact operating system and browser you are viewing the site on (TIP: You can easily determine your operating system here.)