The majority of Hostess Brands’ snack cake business, including the Twinkies brand, has been sold for a sum of $410m (£270m) this week.
A judge approved the move in a bankruptcy court on Tuesday (19 March), which will see the US bakery company hand over brands such as Ho Hos cream-filled cakes and chocolate cake Ding Dongs, to investment firms Apollo Global Management and Metropoulos & Co, as part of the multi-million-pound deal.
Further sales of Hostess Brands’ assets were also approved, including the majority of the company’s bread business, including Wonder bread, which was sold to US bakery manufacturer Flower Foods for $360m (£237.1m).
Mexican bakery firm Grupo Bimbo also acquired the Beefsteak bread brand for $31.9m (£27m).
A further court hearing, due to take place on 9 April, is expected to reveal the approved sale of a number of brands, including the Drake’s Cakes, Sweetheart, Standish Farms, Grandma Emilie’s and Eddy’s bread businesses. Earlier this month, Hostess Brands confirmed on its website that the combined stalking horse bids for these assets totalled approximately $56.6m (£37.3m).
The company, which went into liquidation last November, revealed three months ago that it had received preliminary bids for its assets.
Hostess Brands revealed last year that it decided to close its doors for business after it lacked financial resources to cope with nationwide strike action over pay cuts. This was initiated by the Bakery, Confectionery, Tobacco and Grain Millers Union (BCTGM), which represents 5,000 of its employees.