Hostess Picks Grupo Bimbo For Beefsteak Bread
NEW YORK (AP) -- Hostess is choosing Mexico's Grupo Bimbo as the buyer for its Beefsteak bread brand.
Hostess said a $31.9 million bid by the maker of Entenmann's cakes beat out another offer by Flowers Foods, which makes Tastykakes and Nature's Own bread. Beefsteak is a regional rye bread available in some states.
Hostess, which is in bankruptcy protection, has also said that it picked Flowers Foods as the buyer for the majority of its breads, including Wonder, Butternut, Home Pride, Merita and Nature's Pride. The company said no qualifying competing bids were submitted.
Hostess will ask a bankruptcy court to approve the sales at a hearing March 19. The company has also picked opening bidders for its snack cakes, including Twinkies. Auctions for those sales are scheduled to take place in mid-March.