NEW YORK: Hostess is moving ahead with plans to sell its Twinkies and other snack cakes after nobody stepped forward to top an offer made by two investment firms.
The bankrupt company earlier had picked a $410 million joint offer from Metropoulos & Co. and Apollo Global Management as the “stalking horse” bid to set the floor for an auction. Others were then given a chance to submit competing offers and Hostess CEO Greg Rayburn had predicted the process would be “wild and wooly.”
But in a document filed in U.S. bankruptcy court Monday, Hostess Brands said no other qualified offers were submitted by the bid deadline. No auction will be held as a result for the cakes, which include CupCakes, Ding Dongs and Ho Hos.
A spokesman for Hostess said the company had no comment on the lack of competing bids. A representative for Apollo, whose investments include the fast-food chains Carl’s Jr. and Hardee’s, declined to comment on when Hostess cakes might return to shelves.
Without providing details, Metropoulos CEO Dean Metropoulos said in a statement that he looked forward to bringing back Hostess cakes “as soon as possible.” Metropoulos also owns Pabst beer.
Hostess had also canceled an auction for its Wonder and other major bread brands after no competing offers were made.