Concerns over the potential demise of Twinkies were premature. The iconic snack food brand will likely find a new owner next month.
A U.S. Bankruptcy Court has given Hostess Brands permission to conduct auctions for its brands, including Twinkies, Drakes and Wonder Bread on March 19. Hostess’ portfolio of snack food brands have attracted the interest of a number of companies, including United States Bakery, McKee Foods, Flowers Foods (NYSE:FLO) and Apollo Global Management (NYSE:APO), which will serve as lead bidders during the auctions, the Associated Press noted.
The company has already received about $858 million in bids for its brands. Unions will have $7.4 million in unsecured claims relating to retirement benefits against the company.
Bankrupt Hostess terminated operations last year after its bakers union went on strike over wage and benefit complaints.
The collapse of the Hostess triggered feverish online bidding by Twinkies fans who hoarded their supplies of the threatened snack and then tried to sell them online.