There are plenty of suitors lined up to impress Hostess Brands right now and convince it that their company can do right by its various divisions after Hostess filed for bankruptcy. It now appears McKee Foods, the makers of Little Debbie, has been granted the hand of Drake’s Cakes. Mmm, cake.
The Associated Press cites a filing in U.S. bankruptcy court, which says McKee offered up $27.5 million in cash for the brands, which also include familiar names like Devil Dogs, Funny Bones and Yodels. As for who will be granted permission to woo Twinkies and other Hostess cakes, that’s still up in the air.
It isn’t just McKee getting a sweet deal — United States Bakery Inc. will pay Hostess $28.9 million for its bread brands Sweetheart, Eddy’s, Standish Farms and Grandma Emilie’s. Its other bread brands, including Wonder, went to Flower Foods earlier this month.
A judge will still have to approve any of these final sales.
Little Debbie and Hostess cakes used to be competitors, with Little Debbie selling for a lower price. There are a lot of similarities between the two brands’ cakes, like Devil Cremes versus Devil Dogs, and that’s not going to change, apparently.
“Our intent is to produce like products as they are since they have different packaging and formulae,” a McKee spokesman said in a statement.
Make room on the shelf for some old-fashioned cake battles.