Court approves sale of last of core Hostess assets
Hostess Brands Inc.
has won approval to sell off the last of its major cake and bread
brands, bringing the total proceeds from its liquidation to about $860
A representative for Hostess says a U.S. Bankruptcy Court judge in New York approved the two deals Tuesday.
Foods Corp., the maker of Little Debbie snack cakes, will buy the
Drake's business for $27.5 million, gaining Devil Dogs, Ring Dings,
Yankee Doodles and other products.
United States Bakery Inc. will
buy Sweetheart, Eddy's, Standish Farms and Grandma Emilie's bread brand,
plus four bakeries and 14 depots for $30.9 million.
The two buyers had been lead bidders for their purchases.
Irving, Texas-based Hostess filed for Chapter 11 protection in January 2012 after years of turmoil.