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
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
Commercial Real Estate Trends to Watch in 2026
Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner
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.