Hilco Global Maximizes the Value of Hostess Brands

Following multiple bankruptcy filings, Hostess Brands, Inc. announced in late 2012 that it was shutting down its business and selling all of the company snack cake and bread assets, including inventory, machinery and equipment, rolling stock, real estate, and intellectual property.  Hilco Global was hired by the company to provide an integrated solution for maximizing asset values, which included the expertise of multiple Hilco business units and $30M of capital needed to fund operations during the bankruptcy and sale process.

As an exclusive sales agent and asset advisor, Hilco Global first valued the assets, including bakery equipment, rolling stock, real estate and intellectual property such as iconic brands like Hostess and Wonder Bread.  A shutdown and sale process ensued, during which Hilco Global also provided security protection for the hard assets.

One of the more formidable challenges was managing the disposition of over 260 owned real estate locations.  Following the bulk sale of 120 locations as part of a combined brand/asset purchase, Hilco implemented a highly-innovative marketing campaign to quickly sell the remaining 140 locations across 34 states.  Included were print advertising, website listings, electronic media, public relations and signage. Within approximately 90 days, over 6,000 prospective buyers had responded, which led to over 400 offers and completion of the sale.

Ultimately, the entire asset portfolio was sold, yielding millions of dollars to bankruptcy creditors and Hilco Global participation was considered instrumental in helping to sell the company to two strategic buyers for almost $800 million dollars.

*Hostess Brands, Inc. All third party trademarks are the property of their respective owners. No affiliation with, endorsement of, or sponsorship by such third party trademark owners is intended or should be inferred.