After a joint purchase by investment groups Apollo Global Management and Metropoulos, the new owners have heard the cries of the public and have announced that production of former Hostess favorites, including Twinkies, Ding Dongs, Ho Hos, Suzy Qs, Mini Muffins, and Hostess Cup Cakes, will soon begin at four of the former Hostess bakeries located in Columbus, GA, Schiller Park, PA, Indianapolis, IL, and Emporia, KN.
The investment partners paid $410 million for the bakeries and the right to again produce the consumer favorites. The sale was the result of the liquidation of the assets of the former Hostess Brands, Inc’s by a bankruptcy liquidation sale.
According to a Wall Street Journal report, the new owners plan to reopen up to five of the former bakeries, invest an additional $60 million into the new business, and also plan to hire 1,500 workers to run the plants. Many of the new hires may be former union employees, who were encouraged to reapply for their former jobs, but which will be strictly non-union positions.
While the new owners claim that they will pay the new hires competitive wages and benefits, we can only assume that the former labor union of the Hostess workers, the Bakery, Confectionary, Tobacco & Grain Millers International Union, will not be among those cheering on the new company and its employees.
Prior to Hostess closing its plants, it had eleven bakeries and about 18,000 employees. Hostess went through two different bankruptcy proceedings before it eventually failed to make a deal with its unions, and then it went into a liquidation proceeding.
For the sake of sugar addicts everywhere, let’s hope that the new company can be more competitive and successful than Hostess was. After all, how could America survive without Twinkies and Hostess Cup Cakes?
Michael B. Katz, Esq.