You are here: News > Snacks and Candy
Sponsored By:
More Than 100 Bidders for Hostess’ Brands
$1.8 million in bonuses OK’d as selloff gets under way
NEW YORK -- The future of Twinkies is virtually assured, but not the 18,000 jobs of bankrupt Hostess Brands.
A federal bankruptcy judge approved wind-down plans late Thursday for the maker of Twinkies, Ding Dongs and Ho Hos, according to an Associated Press report. That included approving bonuses worth up $1.8 million if top executives meet certain liquidation goals.
And it sets the stage for the company to find a second life with new owners. Hostess said in court that it's in talks with 110 potential buyers for its brands.
The suitors include at least five national retailers, such as supermarkets, a financial adviser for the company said, according to the report. The process has been "so fast and furious" Hostess wasn't able to make its planned calls to potential buyers, said Joshua Scherer of Perella Weinberg Partners.
"Not only are these buyers serious, but they are expecting to spend substantial sums," he told AP.
In a hearing in the U.S. Bankruptcy Court in the Southern District of New York in White Plains, N.Y., company lawyers said the bonuses are needed to retain the 19 corporate officers and "high-level managers" during the wind-down process, which could take about a year.
Two of those executives would be eligible for additional rewards depending on how efficiently they carry out the liquidation. The compensation is in addition to regular pay.
The bonuses do not include pay for CEO Gregory Rayburn, who was brought on as a restructuring expert earlier this year. Rayburn is being paid $125,000 a month, AP reported.
In court Thursday, an attorney for Hostess noted that the company is no longer able to pay retiree benefits, which come to about $1.1 million a month. Hostess stopped contributing to its union pension plans more than a year ago.
Trending
By:
CSPTV
More than $50,000 donated to local schools through retailer's Fueling the Community program.
By:
Recommendations
CSP Business Media, LLC.
1100 Jorie Blvd, Suite 260 | Oak Brook, IL 60523
Phone: 630-574-5075 | Fax: 630-574-5175
cspinquire@cspnet.com
Comments
Flowers Foods could take Hostess and with its Nature's Own Brand of Bread and be the number 1 baker in the USA within 5 years and they are only serving 70% of the US population now and they are number 2, They are the largest American Baked Foods company now Grupo Bimbo is a Mexican company so do we want to import our snack foods from a foreign country or let the profits go there, like with Budweiser Beer, no they are not going to hire the 18000 people that lost their job but they would hire a lot of American people to produce their goods, they will have the most modern plants to produce those snack cakes from, Forbes named them the "best managed company of the top 400 big companies in the USA" last year, their philosophy is the "The Flowers Way" and it has a proven track record, their research and development team is one of the best around, where did Hostess get their Nature's Pride label and product ideal from and when Flowers sued them for copyright infringement they filed bankruptcy wonder why or Flowers could have foreclosed on them if the court had ruled in Flowers favor which I know they would have almost would have too it was so blaring where Hostess got it from. Hostess never produced a healthy product in their history. Wish you the best Flowers!!!!!!!!!!!!!