In November of 2012, Hostess announced it was going out of business. As soon as the news broke, consumers have been clamoring for the last of Twinkies, Ho Ho’s, Ding Dongs and other treats. But soon, consumers can expect the return of Twinkies and many of the other great delights to store shelves.
Hostess has secured a deal worth $410 million to sell off Twinkies and its Dolly Madison cake brands to investment firms. The deal also includes five Hostess factories and certain equipment.
The sale is not finalized as it still requires the approval of the federal bankruptcy judge involved in the Hostess bankruptcy case, but there are high hopes for the tentatively scheduled hearing on March 19.
If approved, the new owners will be Apollo Global Management and Metropoulous & Company. Apollo Global Management is a private equity firm with experience in food-related investments. Metropoulous & Company already has a presence in the food industry with brands such as Pabst Blue Ribbon and Vlasic pickles.
The deal going through can also mean the potential for additional jobs. When Hostess shut down business, there were some 18,500 workers out of work. The pending new owners do plan to outsource distribution to third-party drivers and work with existing bakeries to produce the snacks.
Some of Hostess’ other brands such as Wonder Bread are being sold to Flower Foods. Hostess continues to seek buyers for other brands that remain and is expected to continue the auction process through early next month.