The Twinkie one step closer to comeback
NEW YORK (AP) - The indestructible Twinkie appears to be one step closer to a comeback.
Hostess Brands is close to announcing that it has picked two investment firms - C. Dean Metropoulos & Co. and Apollo Global Management - as the lead bidders for its Twinkies and other snack cakes, according to a source close to the situation who was not authorized to comment publicly on the talks.
The joint "stalking horse" bid would set the floor for an auction process that lets competitors make better offers. A judge would have to approve any final sale.
After years of management turmoil and turnover, Hostess declared it was going out of business and selling its brands in November. The company, based in Irving, Texas, has already announced separate lead bidders for its other brands. McKee Foods, which makes Little Debbie snack cakes, was picked as the lead bidder for Drake's cakes, which include Devil Dogs, Funny Bones and Yodels.
Flowers Foods, which makes Tastykakes and a variety of breads, was picked as the lead bidder for six of Hostess' major bread brands, including Wonder.
United States Bakery Inc. was picked as the lead bidder for a number of smaller bread brands.
Citing sources close to the situation it did not name, the Wall Street Journal reported Tuesday that the offer for Twinkies and other snack cakes by C. Dean Metropoulos and Apollo would be for more than $400 million. The report said that the deal could be disclosed as early as Tuesday. C. Dean Metropoulos owns Pabst Brewing Co.
A representative for Apollo declined to comment. A representative for C. Dean Metropoulos did not return calls for comment.
Hostess has stressed in bankruptcy proceedings that it needs to move quickly in the sale of its brands to capitalize on the outpouring of nostalgia and media coverage prompted by its demise. The longer the cakes and breads are off shelves, the more people will become accustomed to eating cakes and breads by rivals, the company has said.
Hostess Brands is close to announcing that it has picked two investment firms - C. Dean Metropoulos & Co. and Apollo Global Management - as the lead bidders for its Twinkies and other snack cakes, according to a source close to the situation who was not authorized to comment publicly on the talks.
The joint "stalking horse" bid would set the floor for an auction process that lets competitors make better offers. A judge would have to approve any final sale.
After years of management turmoil and turnover, Hostess declared it was going out of business and selling its brands in November. The company, based in Irving, Texas, has already announced separate lead bidders for its other brands. McKee Foods, which makes Little Debbie snack cakes, was picked as the lead bidder for Drake's cakes, which include Devil Dogs, Funny Bones and Yodels.
Flowers Foods, which makes Tastykakes and a variety of breads, was picked as the lead bidder for six of Hostess' major bread brands, including Wonder.
United States Bakery Inc. was picked as the lead bidder for a number of smaller bread brands.
Citing sources close to the situation it did not name, the Wall Street Journal reported Tuesday that the offer for Twinkies and other snack cakes by C. Dean Metropoulos and Apollo would be for more than $400 million. The report said that the deal could be disclosed as early as Tuesday. C. Dean Metropoulos owns Pabst Brewing Co.
A representative for Apollo declined to comment. A representative for C. Dean Metropoulos did not return calls for comment.
Hostess has stressed in bankruptcy proceedings that it needs to move quickly in the sale of its brands to capitalize on the outpouring of nostalgia and media coverage prompted by its demise. The longer the cakes and breads are off shelves, the more people will become accustomed to eating cakes and breads by rivals, the company has said.
My cell phone has a small screen so comeback was split. For a second there I thought it was finally truth in advertising, although misspelled.Â
If I'm going to splurge and have something bad for my health I'd rather go for a fresh donut over some packaged treat.
America has a huge obesity problem, why the hell do we want hostess products back?
 @NW-Economist Why the hell not? "We" also have a free society. If people want to be obese, they are free to be obese.Â
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I, for one, am not obese, and I enjoy those crumb Donettes from time-to-time. So, I am excited to hear that a company will be putting those delicious lil-devils on the shelves again. (They really are perfect with coffee.)
 @Fugonn  @NW-Economist Are you willing to let those giant, diabetic balloons die as they try to squeeze into the ERs and then demand we pay for their triple bypasses?
 @Fugonn  @y0shio No, I think they should just forfeit free healthcare, I am not willing to give up on that like you.Â
 @NW-Economist  @y0shio My personal opinion - nobody has a RIGHT to free healthcare. Such a premise requires that they have a right to command healthcare providers to work for free, ie indentured servitude. So, no. I don't think its fair. However, I don't get to make all the rules, and I have lost that argument. Â
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Despite losing that argument, I certainly don't like the slippery slope that is already entering the societal discussion (that, of course everyone said would not if the President's healthcare laws were enacted...) that now that "we" have to pay for everyone's healthcare, so "we" have a right to tell you how to live your life. We're talking about what people eat here, and you seem to think that because the government requires "us" to pay healthcare for all, that "we" should start discussing what lifestyle choices people make. So, what should be the punishment for eating Ho-Hos? Jail? Is it a gross misdemeanor?Â
 @Fugonn  @y0shio  @NW-Economist So what about when the poor slobs who finish filling themselves up on Ho-Hos and Twinkies down at the Hostess Factory outlet show up at the Emergency Room having self-induced heart-attacks and they have no way to pay for it, do you think it's fair that the rest of us pick up the tab?
 @y0shio  @NW-Economist I tend to agree with you there. If you're too fat to fit in one seat on the plane, you should have to buy 2, or spring for 1st class. I also agree with your flowery diatribe re: how good health maximizes life enjoyment.Â
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HOWEVER, I like and advocate for maximum individual freedom. I don't want my neighbor telling me how to live my life so long as it doesn't concern them. If I want to go out and buy something, that's my business; not my neighbors', family members', and most certainly not my government's business. I especially don't like it when my neighbors' enlist the government to threaten force of law to infringe upon my free choices.Â
 @Fugonn  @NW-Economist I won't impose on your right to eat whatever you want so long as your right doesn't impose on my space on a plane, bus, train, or in any other public space.Â
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Life is a gift, and without good health you're seriously inhibiting your ability to enjoy it. Don't let your insatiable appetite hinder you from enjoying this amazing gift which has been given to us.
 @NW-Economist I'm willing to let free people make their own decisions about what they want food they want to eat, and I'm willing to let them reap the rewards or the detriments of what the sow.Â
@Fugonn The problem is the rest of us have to pay for their obesity with increased health care premiums, etc. Garbage by any other name is still garbage.
 @Fugonn  @Klondiko No, I am advocating we stop subsidizing free healthcare for people determined to kill themselves slowly with fatty foods.
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There should be a no smoking and no high cholesterol requirement for medicaid and medicare. If they don't like it they can buy private insurance. And no more free ER care for these obese scum who are literally eating themselves to death.Â
 @Fugonn  @Klondiko Hey the day is coming.  The left has been telling us what is good for us for years.  In a few years they will control most peoples health plans.. that will give them the JUSTIFICATION (in their minds) to control your eating choices & portion sizes.  One only has to look to New York and the banning of the Big Gulp to see the writing on the wall.
 @Klondiko So you're going to advocate that the government start telling us what we can eat because "we pay health care premiums"? Maybe we could have a Department of Healthy Living, and they can start running audits on families to determine whether they are living a healthy enough life...
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I like the idea of being free to make my own decisions on what to eat, whether or not I want to have 2-3 beers, no beers, or maybe 12 tonight. Whether I want to be a chain smoker, run marathons, or maybe just have a cigar once in a while. And, I like the idea that I can make those choices without your say so, the government's say so, or anyone else saying yeah or nay.
Funny, I had no urge for a twinkie until I couldn't get one!
Are they kidding....Skip the Twinkie, what about HOSTESS and all the people that were jerked around because of Corporate politics????????????
I really don't think people really care about fat going down our throats.
 @reelin21 It is too bad Hostess could not become an employee owned corporation. That is a financial model that has worked well for some companies and their employees.
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Whoever takes over the brand will either have to pay a substantial royalty or assume a large portion of their debt.
 @A.V.  @reelin21 not a royalty - in a bankruptcy sale all assets are sold outright and this money goes to pay off whatever portion of debts that it can. the buyer of the brand name buys it in the same way that you buy a car and has absolutely no bearing in how the debts are paid, which is determined solely by the bankruptcy court.
@lazarus @A.V. @reelin21 Can you say attorney?