Wal-Mart, Kroger Want a Bite of Twinkie-Maker Hostess

The failed company's assets could sell for up to $1 billion

   

Wal-Mart, Kroger Want a Bite of Twinkie-Maker Hostess

pack twinkie 300x198 Wal Mart, Kroger Want a Bite of Twinkie Maker HostessWith Hostess Brands now in liquidation, a number of big name companies are looking to purchase its popular brands.

An unnamed source told Bloomberg that Hostess had received bids from about two dozen potential buyers — including supermarket operator Kroger (NYSE:KR) and retail giant Wal-Mart (NYSE:WMT) — for its various assets, which could sell for as much as $1 billion.

bankruptcy next exit sign 630 flickr 200x200 Wal Mart, Kroger Want a Bite of Twinkie Maker Hostess
Where Is AMR, After a Year in Bankruptcy?

The bankrupt company has received a wide array of offers, including bids for specific brands or manufacturing facilities, as well as bids for entire business units. Hostess has also received a small number of bids for all of its assets, the sources indicated.

Hostess announced plans to shutter its operations and liquidate the company last month after it failed to come to terms with its bakers union. After rejecting salary and benefits cuts imposed by the bankruptcy court, the bakers union launched a strike that crippled Hostess operations. Last minute attempts to negotiate a settlement with the union failed.

Most analysts expect the company’s popular brands, including Twinkies, Ho Hos, Ding Dongs and Wonder Bread to live on after they are sold to other companies.

Shares of both Kroger and Wal-Mart rose fractionally in Friday morning trading.


Article printed from InvestorPlace Media, http://investorplace.com/2012/12/wal-mart-kroger-want-a-bite-of-twinkie-maker-hostess/.

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