Hostess

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The process that started with strikes and Hostess bakery shutdowns (including one in St. Louis) has made another step forward.

A bankruptcy judge has approved the sale of Twinkies to a pair of investment firms.

Hostess Brands Inc. is selling the spongy yellow cakes, along with other snacks including Ding Dongs and Ho Hos, to Apollo Global Management and Metropoulos & Co. for $410 million.

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Updated 2:26 p.m.

Hostess is moving ahead with plans to sell its Twinkies and other snack cakes to two investment firms after no other competitive offers were made.

(via Flickr/Government & Heritage Library, State Library of NC)

Wonder Bread is one step closer to getting a new owner.

A person familiar with the situation who requested anonymity because the auction process is private says there will be no competing offers Thursday to a bid by Flowers Foods to buy several bread brands from Hostess.

The $360 million bid by Flowers also includes Nature's Pride, Butternut, Home Pride and Merita breads. An auction will still be held for a separate $30 million bid by Flowers for Beefsteak. Any sales require approval by a bankruptcy court.

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The announcement from Hostess that it would be shutting down three of its bakeries (St. Louis, Seattle and Cincinnati) and then, shutting down as a company entirely, evoked a "Twinkie panic."

Twinkie hoarders, artists, and Ding Dong enthusiasts weren't the only consumers affected when Hostess started shutting down plants across America just a few weeks ago.

via Wikimedia Commons

A bankruptcy judge in New York has ordered Hostess Brands Incorporated back into mediation with its second-largest union, meaning for the time being the maker of Twinkies, Ding Dongs and Wonder Bread will not shut down.

The company had begun the process of liquidating its assets following a Nov. 9 strike by its bakers' union.   The Hostess plant in St. Louis employed 360 people before it was closed last week.

Dave Douglas has worked for the company for 28 years and says he can’t afford to give up any more in wage and benefits to keep the job.

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Grocery stores across Missouri are running out of Twinkies and other Hostess products, following today’s announcement that the company is going out of business.

Shoppers had already been snapping up Twinkies, Ding Dongs and other Hostess-made snacks prior to the announcement that the company was closing.  Lori Willis is spokeswoman for the St. Louis-based Schnucks grocery chain.  She says they expect to completely run out of Hostess snack products by Saturday.

“As a retailer, this is the very last thing you want to hear, that you’re not going to be able to meet the needs of your customers, so we’re working very hard with a lot of other suppliers to make sure that we can fill in where we can," Willis said.

The Hostess brand, home of the Twinkie, Sno Ball, Ding Dong, and those fun cupcakes with the swirly lines on top and filling in the middle, is shutting down, as our colleagues over at The Two-Way blog report. The purveyor of iconic calorie-rich but nutrient-poor snacks says a labor dispute has forced it to go out of business.

Carrying through on its warning about what could happen, the management of Hostess Brands announced this morning that the company is going out of business and laying off its 18,500 employees.

At issue: According to Hostess CEO Gregory Rayburn, "we simply do not have the financial resources to survive an ongoing national strike."

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Hostess Brands Inc. is permanently closing three bakeries following a nationwide strike by its bakers union.

The Texas-based maker of Twinkies and Ding Dongs says the strike has prevented it from producing and delivering products.

Hostess warned earlier this month that the strike, by about 30 percent of its workforce, could lead to bakery closures. It said Monday that it will close bakeries in Seattle, St. Louis and Cincinnati that collectively employ 627 workers. The company has about 18,300 employees.