Hostess expected to name bidders for bread brands

NEW YORK - The makers of Thomas' English muffins and Tastykake snacks are emerging as bidders for Wonder Bread and other Hostess bread brands as the company tries to sell off its assets under bankruptcy court oversight, a newspaper reported Saturday.

The Wall Street Journal said Hostess Brands Inc. could announce as early as this week that Flowers Foods Inc. and Grupo Bimbo SAB are in discussions to acquire the bread brands, which include Nature's Pride. The report said the brands could command $350 million.

Grupo Bimbo's brands include Arnold breads, Thomas' English muffins, and Entenmann's cakes. Flowers Foods' include Nature's Own breads and Tastykake snacks.

Hostess produced Twinkies, Ding Dongs, and Ho Hos, along with Dolly Madison cakes, which include Zingers. Hostess also produced Devil Dogs, Funny Bones, and Yodels under the Drake's brand.

Hostess, based in Irving, Texas, announced in November it was shutting its business and selling its bread, snack, and cake brands along with its 33 bakeries and other operations.

The company's demise followed years of management turmoil and turnover. Workers said the company failed to invest in updating its snack cakes and breads. Hostess filed for its second Chapter 11 bankruptcy protection in less than a decade last year, citing steep costs associated with its unionized workforce.

The company was able to reach a new contract agreement with its largest union, the Teamsters, but the bakers union rejected the terms and went on strike Nov. 9. About 330 of the bakery union's 6,600 Hostess members were employed at the company's Northeast Philadelphia plant.

A week later, Hostess announced its plans to liquidate, saying the strike had crippled its ability to maintain production. In 2011, company revenue was $2.5 billion.

Hostess declined to comment, as did Grupo Bimbo's U.S. division, Bimbo Bakeries USA. Bimbo's parent company is based in Mexico. A message left with Flowers Foods, based in Thomasville, Ga., was not immediately returned.

Hostess said in bankruptcy proceedings in December it was narrowing down the bids it had received and expected to sell off its cakes and breads to different buyers.