Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Hostess Begins First Round Of Bankruptcy Auctions
Author: Joel R. Glucksman
Date: February 26, 2013
Key Contacts
Back
Hostess Brands will soon begin the process of auctioning off its most iconic labels in an effort to emerge from protection under bankruptcy law.
The process will begin in the last week of February, during which the company will auction off several of its brands, including Wonder Bread, Dow Jones Newswires reports. One bidder – Flowers Foods – has already shown great interest in several of the brands and has offered $360 million for five of them, including Wonder Bread and Nature’s Pride. Flowers Foods currently produces Tastykakes and Nature’s Own. The auction will be overseen by a U.S. Bankruptcy judge who must approve any bids before they are allowed to move forward. However, if Flowers Foods loses the Wonder Bread brand to a higher bidder, it will receive a $10.8 million break-up fee.
Another auction will take place in March, during which the coveted Twinkies and Ho Hos brands will be put up for sale. Private-equity firms Apollo Global Management LLC and Metropoulos & Co. have created a partnership to bid roughly $410 million for most of Hostess’s cakes business, including Twinkies and Ho Hos. Hostess has agreed to pay the equity firms $12.3 million if they lose the bid during the March 13 auction, according to MarketWatch.
A third bidder, McKee Food Corp., the maker of Little Debbie snack cakes, has its eye on Hostess’s Drake’s and a number of bread brands, including Grandma Emilie’s and Sweetheart. The company has offered up a $27.5 million bid for the Drake’s brand and equipment, MarketWatch notes.
Hostess originally sought Chapter 11 bankruptcy, which would have allowed it to restructure its assets, but moved to a Chapter 7 liquidation in November after discovering that future projected income would not support its restructuring plan.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.