Hostess CEO: Buyers Lining Up For Our Brand

The rush to stockpile Twinkies and Ho-Hos the past week may have been premature, according toABC News.  Hostess will appear in bankruptcy court today to settle the sale of assets in their liquidation, brought on by a failure to reach a settlement with the bakers’ union.  However, Hostess CEO Gregory Rayburn says that they have already received offers to buy the brands — including a very promising offer from a Mexican group that may have a better economic model than can be found in the US:

“I think we’ll find buyers,”  CEO Gregory F. Rayburn told ABC News on Sunday.  ”A few have surfaced already since Friday expressing interest in the brand to acquire them.”

Con Agra and Flowers Foods are among the companies that have expressed interest in Hostess, but Mexican company El Grupo Bimbo may have an edge, the Christian Science Monitor reported Saturday.  Grupo Bimbo, headed by Mexican billionaire Daniel Servitje Montull, is the largest bread-baking company in the world.

Economists say part of the reason Hostess struggled was due to high sugar tariffs meant to protect local producers, the Monitor reported.  Grupo Bimbo could take advantage of lower sugar prices in Mexico.

More