Twinkies may find buyer, Hostess CEO says
Hostess Brands, the maker of the iconic Twinkies snack cakes, may find a buyer when it heads to bankruptcy court today to liquidate the 82-year-old company, the company's CEO says.
"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.
Hostess makes Twinkies as well as popular snacks including Ho Hos, Ding Dongs, Suzy Qs, Sno Balls and Wonder Bread.
Last week the company announced it would close after it imposed wage and benefit cuts to its workers, prompting a bitter nationwide strike.
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