Saturday, January 5, 2013

Flowers Foods - Wsj Says Hostess In Talks To Sell Bread Brands - News

NEW YORK (AP) The producers of Thomas' English muffins as well as Tastykake something to eat are coming through as being the two belonging to the visitors to get Wonder Bread and other Hostess bread companies as the company tries to offer down it has the resources underneath bankruptcy-court oversight, some sort of magazine documented Saturday.

The Wall Street Journal stated Hostess Brands Inc. could reveal since next week this Flowers Foods Inc. as well as Grupo Bimbo SAB will be in talks to purchase the actual bread brands, which usually as well comprise Nature's Pride. The report reported that companies might command $350 million.

Grupo Bimbo's manufacturers include things like Arnold breads, Thomas' English muffins and Entenmann's cakes. Flowers Foods Inc.'s manufacturers include things like Nature's Own breads and Tastykake snacks.

Hostess sells Twinkies, Ding Dongs and Ho Hos, together with Dolly Madison cakes, along with Coffee Cakes in addition to Zingers. Hostess also stocks Devil Dogs, Funny Bones, and also Yodels beneath the actual Drake's brand.

Hostess, and that is based inside Irving, Texas, publicised in November that it ended up being shutting decrease their business in addition to selling it's bread, snacks and cakes manufacturers alongside featuring its 33 bakeries and other operations.

The business' demise followed immediately after years with software chaos and turnover. Workers mentioned the organization didn't put money into updating its treat cakes and breads. Hostess filed for its second Chapter 11 bankruptcy in below a decades continue year, citing extreme fees connected with it is unionized workforce.

The provider been able to arrive a different agreement arrangement which consists of most significant union, the particular Teamsters, nevertheless the bakers union rejected your terms plus went on affect Nov. 9. A week later, Hostess announced it's blueprints to be able to liquidate, declaring the boxing techinque crippled it is ability to keep regular production. In 2011, the business' profit seemed to be $2.5 billion.

Hostess declined to comment, while would Grupo Bimbo's U.S. division, Bimbo Bakeries USA. Bimbo's father or mother firm is headquartered throughout Mexico. A information still left with Flowers Foods , that is certainly based in Thomasville, Ga., seemed to be certainly not instantly returned.

Hostess said inside bankruptcy court procedures in December this it absolutely was narrowing straight down the actual prices for bids it possessed obtained thinking that them expects to market out of it is snack cakes along with bread companies to be able to distinct buyers.

Hostess claimed throughout December that that expects to be able to file binding prices for bids for most involving it has the brand names the following month, with some sort of four-week sell process to allow for competing bids. Closings for many makes could possibly arrive while rapidly because mid-March, in line with Joshua Scherer associated with Perella Weinberg Partners, which is counseling Hostess.

An law firm with regard to Hostess claimed with court in December that 1,100 employees had been stored to help turn off vegetation and also accomplish different projects because it days lower its operations. The liquidation of the business will certainly in the end suggest the foreclosure of 18,000 jobs, not like those people get rid of in the decades bringing about this company's failure.

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