New York — Hostess has picked a lead bid for its famous Twinkies.
The bankrupt company said late Wednesday that it has selected a joint offer from two investment firms, Metropoulos & Co. and Apollo Global Management LLC, as the lead bid for its Twinkies and other snack cakes.
Hostess says the two are teaming up on $410 million bid for the snack-cake business and five bakeries. The “stalking horse” bid would set the floor for an auction process that lets competitors make better offers. A judge would have to approve any final sale. In an interview on CNBC Thursday morning, Hostess CEO Greg Rayburn said he expects the auction for the cakes to be “wild and wooly.” Twinkies and other cakes could return to shelves during the back-to-school season, he said.
The offer sets the stage for the return of Twinkies and other Hostess cakes to supermarket shelves under new management. Although supermarkets saw a run on Twinkies when news hit in November that Hostess was going out of business, the company’s sales had been declining amid changing tastes and a lack of investment in marketing.