Wednesday, March 20, 2013

Hostess brands to be sold; Twinkies could be back by summer

Posted By on Wed, Mar 20, 2013 at 7:00 AM

Americas Twinkie drought might soon be over.
  • America's Twinkie drought might soon be over.
Great news, everybody. A federal bankruptcy judge has approved the sale of the rights to Hostess Brands, the creator of everyone's favorite indestructible snack cakes and glowingly white bread. Last November, the company (which was formerly based in Kansas City) went out of business after failing to reach a labor agreement with its bakers' union. The shutdown led to runs on baked goods at Hostess surplus stores around the nation, including here.

The Times reports that on Tuesday, judge Robert D. Drain gave the stamp of approval to a deal that will give control of Hostess' snack cake brands - including Twinkies and Ho Hos - to the investment company Apollo Global Management and Metropoulos & Co. for $410 million. Flowers Foods snapped up Wonder Bread and other bread brands for $360 million, and Mexico's Groupo Bimbo nabbed Beefsteak bread for $31.9.

The most joyous news for schoolchildren (and shameless grown-ass adults) who have been missing cream-filled spongy desserts from their lunchboxes, is that the new owner of Twinkies could have them back on shelves by summer. And don't worry about how Hostess rival Little Debbie is faring. Not only did the redheaded cake pusher have almost four months without Hostess eating into her profits, Little Debbie's parent company bought the rights to Hostess' Drake's Cakes for $27.5 million.

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