IRVING, Texas -- Wal-Mart Stores Inc. and Kroger Co. are among the bidders for assets being sold by Hostess Brands Inc., the bankrupt maker of Wonder bread and Twinkies, a person familiar with the matter told Bloomberg News.
There are about two dozen bidders, said the person, who asked not to be named because the process is confidential. Last month, financial adviser Joshua Scherer of Perella Weinberg Partners LP said the liquidation sale may generate about $1 billion.
A few of the bids are for all the assets, some are for just the cakes or breads businesses, and others are interested in individual Hostess plants or products, according to the Bloomberg report. Other first-round bidders include Grupo Bimbo SAB and Alpha Baking Co., the source said.
The 82-year-old Irving, Texas-based maker of Hostess CupCakes, Ding Dongs and Ho Hos said last month that it would liquidate and fire more than 18,000 workers after failing to reach agreement with its striking bakers' union on concessions to help it emerge from its second bankruptcy. Changes in American diets led to years of declining sales at Hostess, while ingredient costs and labor expenses climbed. See “Related News” below for previous coverage.
Representatives for Hostess, Wal-Mart, Kroger, Alpha Baking and Bimbo declined to comment on the auction process. C. Dean Metropoulos & Co., the private-equity firm that owns Pabst Brewing Co., also planned to submit a bid.