Hostess Brands, the bankrupt producer of bakery products, is in talks with several bidders over the sale of its brands.
About 110 bidders have contacted the company over the purchase of a part of the business, while 70 bidders are ready to sign confidentiality agreements. In addition, six bidders have appointed large investments banks to handle the acquisition, reported Reuters.
The potential buyers include large national retailers as well as overseas buyers.
By January 2013, initial bids are expected to be finalized for various brands, following which, an auction would be held. The money received from the sale will be used by the company to pay its creditors.
Hostess Brands is estimated to be worth about $2.4bn, which is equal to its annual sales.
In November, Hostess Brands received approval from the US Bankruptcy Court in New York to close its business and sell its assets.
The company, which has been affected by increasing debts, soaring labour costs and the changing tastes of consumers, filed for bankruptcy in January 2012 for the second time in its history, declaring assets of $982m and debt of $1.43bn.
