Hostess Brands — the maker of such iconic baked goods as Twinkies, Drake’s Devil Dogs and Wonder Bread — announced Friday that it is asking a federal bankruptcy court for permission to close its operations, blaming a strike by bakers protesting a new contract imposed on them.
The closing will result in Hostess’ nearly 18,500 workers losing their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide, as well as 570 outlet stores. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represent around 5,000 Hostess employees.
Hostess treats is an American staple in anyone’s household. I grew up eating a few of these delicious products especially Drake’s Devil Dogs. It must run in the family because my little cousin loves them too; he won’t let anyone take his. If he catches you, watch out!!
While living in Kentucky you couldn’t find Drakes’ products anywhere, so I would have my mom send me a care package every so often.
Even though, Hostess will move to sell its assets to the highest bidder. That could mean new life for some of its most popular products, which could be scooped up at auction and attached to products from other companies.
Among the possibilities:
- Kellogg recently bought the Pringles brand of salty snacks, and Pringles is now Kellogg’s No. 2 brand.
- Mondelez International, spun off recently from Kraft, is a large snack producer, although it has seemed more interested in expanding outside the U.S.
- Campbell Soup also has a large snack business, but it’s been focused on healthier foods and rebuilding its soup business, Lash says.
- Grupo Bimbo, whose brands include Arnold and Sara Lee and Entenmann’s, might also be a candidate due to its large presence in the supermarket bread aisle.
At this point, investors can only guess what the fate of Hostess will be. “It’s hard to say who will buy it,” Lash says. “But snacks overall is an area many companies are paying attention to.”