The sale of Beefsteak to Grupo Bimbo was also approved. Grupo Bimbo makes Entenmann’s cakes and Thomas’ English muffins and is paying $31.9 million for the regional bread brand.
A separate hearing is scheduled for April 9 to approve the sale of Drake’s cakes, which include Devil Dogs and Yodels. Hostess picked McKee Foods, the maker of Little Debbie snack cakes, as the buyer for those brands at $27.5 million.
Taken together, a Hostess spokesman said 29 of the bankrupt company’s 36 bakeries were sold as part of the transactions. It will be up to the new owners whether to hire back the thousands of workers who lost their jobs when the company went out of business.
In a statement, the company’s bakers union said it shared the enthusiasm exhibited by the new owners to bring Hostess brands back to shelves quickly.
The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union said it believed “our highly-motivated and skilled workforce will serve as indispensable partners in the seamless re-opening of factories.”
Hostess closed its factories in late November following a strike by the union. The company had been struggling financially for years.