Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Hostess is Coming Back? Hostess Brands to Make Comeback by Summer
Author: Joel R. Glucksman
Date: March 19, 2013
Key Contacts
Back
Hostess is coming back to a supermarket near you
Thousands of people flocked to grocery stores when Hostess announced that it would no longer make its iconic desserts following its bankruptcy. However, the company has now announced that its popular Twinkies brand, along with other favorites, may return to the shelves as early as summer following the approved sale of its snack cakes to new owners.
Hostess recently announced its plans to sell its infamous snack cakes – including Twinkies, Ding Dongs, Ho Hos, Snowballs and Dolly Madison Zingers – to two investment firms, Metropoulos & Co. and Apollo Global Management. The companies previously submitted a joint offer of $410 million as a “stalking horse” bid at auction, but Hostess informed a U.S. Bankruptcy Court that it no longer wished to hold the auction because no other qualifying bids were received, according to The Associated Press. The company originally sought bankruptcy law protection under Chapter 11 of the Bankruptcy Code, but was forced to convert to Chapter 7 liquidation due to failed talks with union leaders. However, it had hoped to receive stronger bids for its brands than it actually did.
“It’s not that we lacked interest,” Gregory Rayburn, Hostess chief executive, said in an interview with the New York Times. “Other bidders felt that they could not top the price.”
Following the announcement of the sale, Metropoulos & Co. CEO and founder Dean Metropoulos said he was pleased with the purchase and has plans to get the brands back in stores soon.
“Our family is thrilled to have the opportunity to reestablish these iconic brands with new creative marketing ideas and renewed sales efforts and investment,” said Metropoulos. “We look forward to having America’s favorite snacks back on the shelf by this summer. We are also ecstatic to bring jobs back to many cities across the country.”
Although the companies have provided no concrete details, analysts predict that they will keep the familiar Hostess name and may also stock a wider variety of stores with the snack cakes, according to the Times.
- 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
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
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.