About This Site

This website is intended to provide answers to many of the most common questions related to the Wind Down of Hostess Brands.

Media

Media inquiries should be directed to Lance Ignon or Tom Becker at (212) 573-6100 or Tammy Taylor or Anita-Marie Laurie at (310) 788-2850.

Administrative Claims Bar Date Info
Court Filings
Purchase Inquiries

Brands:
Perella Weinberg at hostess@pwpartners.com

Real Estate:
hostess@hilcorealestate.com

Machinery & Equipment:
ecervac@hilcoind.com

Rolling Stock (Vehicles):
jbacque@hilcoind.com

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Friday
Oct042013

IMPORTANT NOTICE REGARDING PAYMENT OF CLAIMS (dated as of October 4, 2013)

Please be advised of the following:  

The Debtors initiated their bankruptcy cases with the intent to rapidly negotiate and resolve their various union labor agreements while simultaneously rationalizing their capital structure.  In support of these efforts, the Debtors negotiated with their unions and filed a plan of reorganization that proposed a revised capital structure for the Debtors if union agreements could be achieved.  However, as a result of strikes initiated or honored by many of the Debtors' unionized employees in early November 2012, the Debtors were forced to shutdown their business operations and thereafter initiated a sale process for the Debtors' assets.  

Under bankruptcy law, with certain limited exceptions, creditors with secured claims (i.e., those creditors having mortgages upon the Debtors' real property or security interests in the Debtors' other property) must be paid in full before the Debtors are permitted to make distributions to other creditors (one exception to this rule is for those parties that are presently assisting with the winddown of the Debtors' bankruptcy cases).  

At this time, the Debtors have sold the majority of their assets in a series of transactions.  Based upon the proceeds received, it has unfortunately become apparent that the Debtors are unlikely to be able to pay their secured creditors in full, and thus are unlikely to have sufficient funds to pay other creditors.

 Accordingly, holders of all unsecured claims, whether such claims are administrative claims, priority claims or general unsecured claims, and specifically including former employees with unpaid severance and vacation claims, should not currently expect a distribution from the Debtors' estates on account of any claims they may hold.  This is true whether or not proof of claim forms were filed or whether or not the claims have been allowed by bankruptcy court order.  The bankruptcy court has been apprised of this situation.

Tuesday
Apr092013

Hostess Brands Wins Court Approval to Sell Drake's® and Remaining Bread Brands

Hostess Brands Wins Court Approval to Sell Drake's® and Remaining Bread Brands

KANSAS CITY, Mo., April 9, 2013 /PRNewswire/ -- Hostess Brands Inc. ("Hostess Brands" or "the Company") today announced that it has obtained U.S. Bankruptcy Court approval to sell its Drake's® snack cake brand as well as four of its northwest regional bread brands in two separate transactions totaling approximately $58.4 million in proceeds.

"The sale of Drake's® and the bread brands are the culmination of our efforts to sell the Company's major assets," said Gregory F. Rayburn, the Company's Chairman and Chief Executive Officer. "All of the Company's beloved brands can now live on and, importantly, we have maximized value for the Company's stakeholders. We now turn our attention to selling remaining miscellaneous assets and completing the liquidation."

Hostess Brands has now obtained Court approval of five transactions totaling approximately $860 million in proceeds.

U.S. Bankruptcy Judge Robert Drain today approved the following transactions:

  • The sale of the Company's Drake's® snack cake brand and certain related assets to affiliates of McKee Foods Corporation for $27.5 million. Drake's products include Ring Dings®, Yodels®, Devil Dogs®, Yankee Doodles®, Sunny Doodles®, and Drake's Coffee Cake®.
  • The sale of the Company's Sweetheart®, Eddy's®, Standish Farms®, and Grandma Emilie's® bread brands, four bakeries, and certain other related assets to affiliates of United States Bakery for approximately $30.9 million.

Judge Drain previously approved the following transactions:

  • The sale of the majority of the Company's snack cake business to affiliates of Apollo Global Management, LLC and Metropoulos & Co. for $410 million. The assets sold include the Hostess® and Dolly Madison® snack cake brands, five bakeries and certain other related assets. Among the products included are the Company's Twinkies®, Ho Hos®, Ding Dongs®, and Donettes® snack cakes.
  • The sale of the majority of the Company's bread business, including its Wonder® brand, to affiliates of Flowers Foods, Inc. for $360 million. The assets sold include six of the Company's largest bread brands, 20 bakeries and certain other related assets.
  • The sale of the Beefsteak® bread brand to affiliates of Grupo Bimbo, S.A.B. de C.V. for $31.0 million.

The Company has retained Hilco Industrial, LLC to market and sell its remaining assets, including property and equipment.

Jones Day provided legal advice to Hostess Brands on all of the transactions. Perella Weinberg Partners served as the Company's financial advisor.

Tuesday
Mar122013

Hostess Brands Selects Apollo Global Management and Metropoulos & Co. as Winning Bidder for Majority of Snack Cake Business, Including Twinkies®

Hostess Brands Selects Apollo Global Management and Metropoulos & Co. as Winning Bidder for Majority of Snack Cake Business, Including Twinkies®

  • Agreement Includes Both Hostess® and Dolly Madison® Brands
  • Company to Seek Court Approval of Sale on March 19

KANSAS CITY, Mo., March 12, 2013 - Hostess Brands Inc. ("Hostess Brands" or "the Company") announced that the stalking horse bid submitted by affiliates of Apollo Global Management, LLC (NYSE: APO) (collectively with its subsidiaries "Apollo") and Metropoulos & Co. ("Metropoulos") for the majority of the Company's snack cake business, which includes both Hostess® and Dolly Madison® branded products, will be the bid presented for approval to the U.S. Bankruptcy Court as no other qualified bids were received for those assets.

Apollo and Metropoulos have agreed to pay $410 million to purchase the brands, five bakeries and certain equipment. Among the products included are the Company's Twinkies®, Ho Hos®, Ding Dongs® and Donettes® snack cakes. The Company will ask the U.S. Bankruptcy Court for the Southern District of New York to approve the transaction at a hearing on March 19.

"The agreement results in significant value for our stakeholders and we look forward to putting the proposed transaction before the Court next week," said Hostess Brands Chairman and Chief Executive Officer Gregory F. Rayburn.

As previously announced, Flowers Foods, Inc. has agreed to pay $360 million for the majority of the bread business assets. The agreement includes, in addition to the brands, 20 bakeries, 38 depots and other assets. In a separate transaction, Grupo Bimbo, S.A.B. de C.V. ("Grupo Bimbo") was selected as the winning bidder for the assets related to the Company's Beefsteak® bread business at the conclusion of a Feb. 28 auction. Grupo Bimbo has agreed to pay $31.9 million for the Beefsteak® assets. The Court will also consider approval of these brands at the same March 19 hearing for the Hostess® and Dolly Madison® brands.

On March 15 Hostess Brands will conduct an auction for its Drake's® snack cake business and Sweetheart®, Standish Farms®, Grandma Emilie's® and Eddy's® bread businesses. The combined stalking horse bids for those assets total approximately $56.6 million.

Jones Day provided legal advice to Hostess Brands on all of the transactions. Perella Weinberg Partners served as the Company's financial advisor.

Tuesday
Mar122013

Hostess Brands Selects Flowers Foods as Winning Bidder for Majority of Bread Business, Including Wonder®

Hostess Brands Selects Flowers Foods as Winning Bidder for Majority of Bread Business, Including Wonder®

  • Grupo Bimbo Selected as Winning Bidder for Beefsteak® Bread Business in Separate Transaction
  • Combined Proceeds for Proposed Transactions Total Approximately $391.9 Million
  • Company to Seek Court Approval of Sales on March 19

KANSAS CITY, Mo., Feb. 28, 2013 - Hostess Brands Inc. ("Hostess Brands" or the "Company") today announced that the stalking horse bid submitted by Flowers Foods, Inc. (Flowers) for the majority of the assets related to the Company's bread business, including the Butternut®, Home Pride®, Merita®, Nature's Pride® and Wonder® brands, will be the bid presented for approval to the U.S. Bankruptcy Court as no other qualified bids were received for those assets.

Flowers has agreed to pay $360 million for the majority of the bread business assets. The agreement includes, in addition to the brands, 20 bakeries, 38 depots and other assets. In a separate transaction, Grupo Bimbo, S.A.B. de C.V. was selected as the winning bidder for the assets related to the Company's Beefsteak® bread business at the conclusion of today's auction. Grupo Bimbo has agreed to pay $31.9 million for the Beefsteak® assets.

The Company will ask the U.S. Bankruptcy Court for the Southern District of New York to approve both transactions at a hearing on March 19.

"The proposed sales will result in significant proceeds for the benefit of the Company's stakeholders and ensure the beloved bread brands can continue to be enjoyed for years to come," said Hostess Brands Chairman and Chief Executive Officer Gregory F. Rayburn.

As previously announced, Hostess Brands is also pursuing the sale of its remaining brands, including Hostess®, Dolly Madison®, Drake's®, Sweetheart®, Eddy's®, Standish Farms® and Grandma Emilie's®.

Jones Day provided legal advice to Hostess Brands on the transaction. Perella Weinberg Partners served as the Company's financial advisor.

Thursday
Jan312013

Hostess Brands Inc. Selects Stalking Horse Bid for Majority of the Assets of Snack Cake Business, Including Iconic Twinkies® Brand

Hostess Brands Inc. Selects Stalking Horse Bid for Majority of the Assets of Snack Cake Business, Including Iconic Twinkies® Brand
  • Apollo Global Management, LLC and Metropoulos & Co. Submit $410 Million Offer
  • Agreement Includes Both Hostess® and Dolly Madison® Brands
  • Company Requests Court Permission to Conduct Auction to Obtain Highest and Best Offer

KANSAS CITY, Mo., Jan. 30, 2013 - Hostess Brands Inc. ("Hostess Brands" or the "Company") today announced that the Company has selected affiliates of Apollo Global Management, LLC (NYSE: APO) (collectively with its subsidiaries "Apollo") and Metropoulos & Co. ("Metropoulos") as the stalking horse bidder for the majority of the assets of the Company's snack cake business, which includes both Hostess® and Dolly Madison® branded products, including the iconic Twinkies® brand. Apollo and Metropoulos have agreed to pay $410 million to purchase the brands, 5 bakeries and certain equipment.

"We are pleased to name Apollo and Metropoulos as the stalking horse bidder for these valuable and beloved brands," said Hostess Brands Chairman and Chief Executive Officer Gregory F. Rayburn. "Interest in these iconic brands has been intense and competitive and we expect that to continue through a robust, court-authorized auction process. The ultimate goal will be the same we have had since we began marketing all of our assets – to maximize value for all of the Company's stakeholders and ensure these great products can be enjoyed by their loyal fans for many years to come."

Hostess Brands has requested that the U.S. Bankruptcy Court for the Southern District of New York (the "Court") authorize the Company to proceed with an auction for the majority of the assets of the snack cake business on March 13, provided the Company receives competing qualified bids. The Company will select the highest and best offer at the conclusion of the auction. The sale to the winning bidder requires Court approval.

As previously announced, Hostess Brands has reached stalking horse agreements, contemplating an aggregate purchase price of more than $440 million, to sell the majority of the assets related to its bread business, including its Wonder®, Butternut®, Home Pride®, Merita®, Nature's Pride®, Beefsteak®, Sweetheart®, Eddy's®, Standish Farms® and Grandma Emilie's® bread brands as well as its Drake's® snack cake business.

The Company will select the winning bidders for the assets of the bread and snack cake businesses at the conclusion of various auctions. Sales to the winning bidders require Court approval.

"The stalking horse bids have set a floor of more than $850 million for the bulk of the Company's assets," Mr. Rayburn said. "We look forward to competitive auctions to further drive value for all of the Company's stakeholders."

Jones Day provided legal advice to Hostess Brands on the transaction. Perella Weinberg Partners served as the Company's financial advisor.