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Hostess stores, depots in Utah set to reopen under new owners

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Posted at 4:35 PM, May 06, 2013
and last updated 2013-05-06 20:38:59-04

OGDEN, Utah - Hostess Brands’ assets are being sold as part of bankruptcy proceedings; one bidder is waiting for approval to take over a bakery in Ogden, and another is set to reopen several other Utah facilities this month, but not under the Hostess name.

According to a press release, The United States Bakery of Portland-Ore., more commonly known as Franz Bakery, has been approved by the Bankruptcy Court of Manhattan to buy the Salt Lake bakery, five depots and seven stores in the state.

Another firm, Georgia-based Flowers Foods, is waiting for approval to buy the Ogden plant, as well as 19 other U.S. bakeries and several Hostess Brands products, including Wonder Bread. Details regarding the company’s plans have not been released as federal regulators perform and anti-trust review.

Before November of 2012, Hostess employed about 600 Utahns at their two bakeries, nearly a dozen retail stores and nine depots. The company’s declaration of bankruptcy resulted in the loss of 18,000 jobs nationwide.

Franz Bakery has hired 60 employees in Utah, including former Hostess workers, and that number could double as production increases. Franz will be producing buns at the Salt Lake City bakery and selling products at stores in Salt Lake City, Midvale, Layton, Provo and Logan.

Hostess brands’ primary bread brands have gone to Flowers Foods, which agreed to pay $360 million for Wonder, Nature’s Pride, Merita, Home Pride and Butternut labels, along with 20 baking plants and 38 depots.

Private equity groups Apollo Global Management and Metropoulos & Co. are bringing back Hostess Ding Dongs and other iconic treats. The firms, operating under Hostess Brands, paid $410 million for the snack line.