A U.S. Bankruptcy Court has given Hostess Brands Inc. an okay to continue auctioning off its sweet goods and the factories that produce them, the Dow Jones Newswire reports.
Judge Robert Drain has ruled on Monday that the defunct maker of baked goods like Twinkies and Ding Dongs can proceed to sell the company to interested buyers. The Irving, Texas, based company announced in November of 2012 that it was closing and looking for buyers for its 30 brands and 36 production facilities.
The decision came after the company failed to compromise with its second largest union of employees. An estimated 18,000 jobs are expected to be lost because of the company's closing.
But there are some buyers who can't wait to get their hands on Hostess's iconic treats and are willing to spend millions.
Among them are firms Apollo Global Management LLC and Metropoulos & Co. who are after the company's cake business. An offer of $410 million has been made to acquire such brands as Dolly Madison, Ho Hos and Ding Dongs.
The company's Drake's brand may be acquired by Tennessee-based McKee Foods Corp. which has offered $27.5 million for the delicious coffee cakes. Bread brands like Sweethear, Eddy's, Standish Farms and Grandma Emilie's may become the property of Oregon-based Franz Family Bakery if its $28.85 million offer goes through.
The auctions are scheduled to take place in March. The Twinkie brand will be auctioned on March 13 and Drake's will be auctioned on March 15. Judge Drain will sign off on the winning bidders during a hearing scheduled for March 19.
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