Bankrupt snack cake icon Hostess Brands Inc announced that its Drake's snack cake subsidiary would be purchased by McKee Foods Corp. The price tag of the sale is at US$27.5 million, the amount indicated in its baseline bid.
After filing for bankruptcy protection, Hostess is liquidating its assets, namely snack cakes Drake's, Twinkies and Wonder Bread. A previous auction for Drake's was cancelled after no bids submitted qualified for the requirements set. McKee's bid was the remaining bidder that complied with all the requisites. Another auction for other brands such as Sweetheart, Eddy's, Standish Farms and Grandma Emilie's would be conducted on Friday as it received a US$30 million baseline bid from United States Bakery Inc.
When sought for comment, a Hostess spokesperson declined to name other bidders for the iconic brands. All the sales would be subject to bankruptcy court approval by Tuesday at the US Bankruptcy Court in Manhattan, New York.
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