A Twinkie here, a Ho Ho there — with bidders reportedly lining up to gobble Hostess’ assets, the brand’s snacks could be split up among some big name brands. Walmart and Kroger are said to be in the scrum of companies waiting to bid on the bits and pieces that remain of Hostess during its liquidation sale.
A source tells Bloomberg News that so far there are around 24 bidders including Walmart and Kroger, but the process is confidential so it can’t be confirmed completely as of yet. Others include Grupo Bimbo SAB and Alpha Baking Co.
Some bidders will go for all of the assets in one big lump, while others will likely bid for various parts of the business like the cakes or breads divisions, according to the source. The total sale could be about $1 billion.
It’s been a terrifying slide from solvency to liquidation — and of course we mean the people who are terrified are all the people worried about whether there will be Twinkies in the future if Hostess is gone. The company failed to reach an agreement with striking bakers union last month.
Once mediation was a no-go, Hostess fired 18,000 workers and announced its liquidation, while saying it wanted to give executives $1.8 million in bonuses.
Hostess Said to Attract Bids From Wal-Mart, Kroger [Bloomberg News]