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
  • Beverly police catch alleged bank robber

    BEVERLY — Police chased down a man on Rantoul Street after he allegedly robbed a bank inside the Stop & Shop on Elliott Street Tuesday afternoon.

    April 16, 2014 1 Story

  • Possible sites for garage revealed SALEM -- Salem State officials have announced three possible locations for the school's proposed 800-space parking garage and say a final decision on the site could be made within weeks. Parking has long been an issue for the school, and the demand f

    April 16, 2014

  • Serial drunken driver found guilty PEABODY -- A serial drunken driver, who was charged with yet another OUI, was found guilty by a jury Monday afternoon in Lawrence Superior Court. Prosecutors now need to prove it was the man's fifth drunken-driving offense. Peter Hurley, 52, was arre

    April 16, 2014

  • North Shore residents to run in 2014 Boston Marathon

    The Salem News asked those on the North Shore who are running this year's Boston Marathon to share their reasons for running. 

    If you're running the marathon this year, it's not too late to share why you're running. Send a brief paragraph, a photo of yourself and a link to your fundraising site (if applicable) to Cheryl Lecesse at clecesse@salemnews.com.

    April 4, 2014

  • casa de moda Beverly's Casa de Moda to close BEVERLY -- Casa de Moda, the unique specialty store that has dressed up an often struggling downtown for more than four decades, is closing. Janice Preston, who has owned and operated the store with her husband, Don, since 1969, said yesterday that t

    April 16, 2014 1 Photo