Hostess wins approval to sell last of its cake and bread brands
(CNN) — Hostess has won approval from a bankruptcy court judge to sell the last of its cake and bread brands.
McKee Foods, which makes Little Debbie snack cakes will buy Drake’s for $27.5 million.
Hostess will also sell some bread brands, four bakeries and 14 depots to a subsidiary of United States Bakery for $30.9 million.
These two deals bring the total from all the Hostess Brand sales to about $860 million.
A bankruptcy judge gave final approval for the sale of Twinkies, Wonder Bread and many of Hostess Brands’ other assets, clearing the way for the iconic products to return to shelves.
Hostess, which was already in bankruptcy court, went out of business during a strike by members of its bakers’ union. The company has been selling off its brands since then to try to raise money for creditors.
Most of the 18,500 Hostess workers lost their jobs a result of the shutdown.