U.S.: Bimbo out, Hostess’ future buyer remains a mystery

Despite misconceptions that Bimbo SAB is a likely buyer of the bankrupt Hostess, Bimbo CEO Gregory Rayburn said in a television interview that the deal would “never happen” due to antitrust concerns. Bimbo recently acquired Sara Lee’s North American enterprises, but had to sell some of the Sara Lee brands to gain approval for the deal by the Justice Department. Hostess will be firing its 18,000 employees, and there is no known buyer or buyers of the now defunct company. Rayburn says Hostess will seek private-equity buyers but did not name specific potential bidders.

UPDATE: Recent reports now suggest there may be hope for Hostess and its beloved Twinkie. Reuters is reporting that a judge has ordered Hostess and its union workers to enter into private talks to try to remedy conflict. Hostess had originally sought liquidation due to a bakers’ strike and argued that closing operations would be the most cost-efficient solution.

Full Content: Kansas City Star, Bloomberg News

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