Grupo Bimbo, the world's largest breadmaker is close to acquiring parts of Hostess' bread business, Forbes.com is reporting.
Multiple companies are in talks and bidding on part of the company as part of the arduous process it must go thorugh since it declared bankruptcy and sell its assets to pay creditors.
The news was first reported by the Wall Street Journal. The WSJ also reported that the Hostess could reveal as early as next week that Bimbo and Flower Foods are the top companies bidding on the company's bread brands, which includes Wonder Bread.
The Hostess bakery in Wayne will close down, leaving more than 300 workers without jobs, as part of that process. The layoffs are expected to go into effect July 3.
The company's cake business, which includes brands like Twinkies and Drakes' Ring Dings, is expected to be sold later this year, Forbes.com reported, and its 33 bakeries shut down.
The bankruptcy stems from the company's inability to come to an agreement with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union. The strike “crippled the company’s ability to produce and deliver products at multiple facilities."