NEW YORK — Hostess has picked the maker of Little Debbie as the lead bidder for its Drake’s cakes.
According to a filing in U.S. bankruptcy court, McKee Foods has offered $27.5 million in cash for the cake brands, which include Devil Dogs, Funny Bones and Yodels. The fate of Twinkies and other Hostess cakes are still being negotiated with other bidders.
Hostess also said United States Bakery Inc. agreed to pay $28.9 million for its remained bread brands, which include Sweetheart, Eddy’s, Standish Farms and Grandma Emilie’s. That offer includes four bakeries, 14 depots and equipment. Earlier this month, Hostess picked Flowers Foods, which makes Tastykake and Nature’s Own and Bunny bread, as the lead bidder for six of its major bread brands, including Wonder.
The “stalking horse” bids set the floor for an auction process that lets competitors make better offers. A judge would have to approve any final sales.
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