SalemNews.com, Salem, MA

Nation/World

November 29, 2012

Twinkies maker Hostess ready for its big bake sale

NEW YORK — The future of Twinkies is virtually assured.

Hostess Brands Inc. got final approval for its wind-down plans in bankruptcy court yesterday, setting the stage for its iconic snack cakes to find a second life with new owners — even as 18,000 jobs will be wiped out.

The company said in court that it’s in talks with 110 potential buyers for its brands, which include CupCakes, Ding Dongs and Ho Hos. The suitors include at least five national retailers such as supermarkets, a financial adviser for Hostess said. The process has been “so fast and furious” Hostess wasn’t able to make its planned calls to potential buyers, said Joshua Scherer of Perella Weinberg Partners.

“Not only are these buyers serious, but they are expecting to spend substantial sums,” he said, noting that six of them had hired investment banks to help in the process.

The update on the sale process came as Hostess also received approval to give its top executives bonuses totaling up to $1.8 million for meeting certain budget goals to bring down costs during the liquidation. The company says the incentive pay is needed to retain the 19 corporate officers and “high-level managers” during the wind-down process, which could take about a year.

Two of those executives would be eligible for additional rewards depending on how efficiently they carry out the liquidation. The compensation would be on top of their regular pay.

The bonuses do not include pay for CEO Gregory Rayburn, who was brought on as a restructuring expert earlier this year. Rayburn is being paid $125,000 a month.

Hostess was given interim approval for its wind-down last week, which gave the company the legal protection to immediately fire 15,000 union workers. The company said the terminations were necessary to free up workers to apply for unemployment benefits. About 3,200 employees are being retained to help in winding down operations, including 237 employees at the corporate level.

Text Only | Photo Reprints
Nation/World

Local News
  • Baker(1) GOP's Baker to unveil plan to fight drug addiction

    BOSTON (AP) — Republican candidate for governor Charlie Baker has unveiled what he's calling a comprehensive approach to tackling the drug addiction crisis in Massachusetts.

    July 31, 2014 1 Photo

  • 140730_SN_DLE_DEMOLITION5 Demolition of Salem Harbor Station begins

    SALEM -- It all begins with B5. Or ends, depending on how you look at it. Demolition began at Salem Harbor Station Wednesday afternoon, with crews first setting upon one of the power plant's 11 steel tanks. The work was supposed to begin Monday, but

    July 31, 2014 7 Photos

  • Market Basket seeks replacement workers through job fair next week

    Market Basket began advertising a job fair for store managers and assistant managers in a direct shot at the current managers who signed petitions Monday threatening to resign if former CEO Arthur T. Demoulas is not rehired. The ad, which will appear

    July 31, 2014 2 Stories

  • Mary Manning Recovering Salem principal says thanks

    SALEM -- Just about a month before she was set to retire after 25 years as the principal of Collins Middle School, Mary Manning entered the hospital with a life-threatening condition. She hasn't been home since. A month later, in June, friends and co

    July 31, 2014 1 Photo 1 Story

  • Former school janitor Robert Scribner sentenced for assaults in truck

    SALEM -- A now-former Marblehead school janitor was ordered to serve a year in jail Wednesday after pleading guilty to charges that he assaulted and threatened to kill his estranged girlfriend after trapping her in his pickup truck in May. Robert Scr

    July 31, 2014