Wonder Bread Sale Nears Completion, Reports Say
A Wonder Bread sale is nearly complete, with the legacy brand no longer officially a casualty of Hostess’ attempt to de-unionize its workforce.
The Wonder Bread sale comes after a tense and ultimately disappointing closure of most Hostess brands after union members in the company’s employ refused to accept massive pay cuts and changes to working conditions.
Before the Wonder Bread sale, Hostess took to the web to blame the union for killing the brand — but soon members and workers piped up, detailing years of cuts and alleging a “Bain Capital-style” takeover at the Twinkie-maker. The debate persists to this day, but it appears at least one of the sub-brands has survived the fallout.
Bloomberg reports that Flowers Foods Inc. is the sole interested buyer in the Wonder Bread sale and that the Hostess execs stand to profit to the tune of several hundred million dollars after nearly 20,000 workers lost their jobs. The site explains Wonder Bread is one of a few brands the new owners will acquire in the bid:
“Flowers, based in Thomasville, Georgia, will pay about $360 million for Hostess’s Wonder, Butternut, Home Pride, Merita and Nature’s Pride brands, 20 bread plants, 38 depots and other assets, after no other competing offers were submitted. Tomorrow’s planned bankruptcy auction will be canceled.”
Bloomberg also reports that several other brands are being eyed by companies in the sell-off, adding:
“McKee Foods Corp., maker of Little Debbie snacks, made a bid of $27.5 million for the Drake’s brand. United States Bakery Inc. offered to buy the Sweetheart, Eddy’s, Standish Farms and Grandma Emilie’s bread brands, four bakeries and 14 depots, plus certain equipment, for about $28.9 million. Both initial offers will be tested at March 15 auctions. Bids are due by March 12 for both auctions.”
It is not clear whether deals like the Wonder Bread sale will benefit any of Hostess’ now-unemployed former workers.