Early last year, Hostess filed for Chapter 11 bankruptcy — its second such filing in a decade. In the fall, after a bitter fight with one of its unions, the company received a judge's permission to close and sell its brands to the highest bidders. They shut down to Union bust... now they are reopening NON UNION - lots of hard working middle class folks lost their jobs.
In recent months, Sara Lee owner Grupo Bimbo picked up the Beefsteak bread business, and Flowers Foods Inc. got bread labels such as Wonder Bread. McKee Foods Corp., maker of Little Debbie snack cakes, took over the Drake's line of goods.
Private equity firms Apollo Global Management, which owns Carl's Jr. parent CKE Restaurants Inc., and C. Dean Metropoulos & Co., which runs beer favorite Pabst Brewing Co., claimed the rights to the bulk of Hostess' most popular snack cakes in March.
Moving ahead, Hostess' key goal should be to reinvent itself without leaning on the appeal of its 83-year history, said Allen Adamson, managing director of brand consultancy Landor Associates' New York office.