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A suitor has emerged for Wonder Bread, the iconic US brand many thought was toast once parent Hostess Brands shuttered, The Post has learned.
The budding bidder visited a majority of Hostess’ 36 plants in the last several days and is considering submitting an offer for the Wonder business, a source close to the situation said.
Wonder, America’s largest bread brand, comprises most of the Hostess bread business, which loses money.
Wonder was so short of money it couldn’t afford to hedge against commodity costs. When wheat prices increased, so did the red ink.
Twenty of Hostess’ 36 plants are mainly used for baking bread.
Hostess, the maker of Twinkies, Ho Hos and Drake’s Cakes in addition to Wonder Bread, shut its doors last month after a crippling strike by its bakers union.
Suitors interested in buying Hostess brands need to make non-binding offers by Monday.
It is no surprise that the Hostess snack business has gotten interest from bidders, but conventional wisdom has been mixed on whether there would be interest in Wonder.
If a suitor eventually buys Wonder and restarts many of the company’s bread plants, it still may not hire some of the 6,000 bakers idled in the shutdown — with or without union benefits.
Under the law, if a majority of the workers hired are union workers, the buyer would then have to bargain with them.
A buyer would not, however, need to retain benefits and could offer its own compensation package, a source with knowledge of the situation said.
Cost-conscious consumers, meanwhile, are likely hoping that Wonder Bread, one of the lower-priced breads on supermarket shelves, survives.
Wonder and rival bakery Bimbo offer loaves of white bread in some locations for $2, while Pepperidge Farm bread, for example, is roughly double the price.
Even if a suitor buys Wonder, it would likely be another six months before production starts, and by that time it is likely that rivals like Bimbo will be able to raise prices — allowing any potential Wonder Bread owner to match those inflated prices, one Hostess insider said.
As had been expected, no potential bidders have emerged seeking to buy all of Hostess’ assets, the source close to the situation said.
Separately, Hostess yesterday responded to The Post’s exclusive story last Sunday that CEO Gregory Rayburn did not take the 8 percent pay cut he imposed on union and non-union workers that prompted the bakers strike.
“Since Mr. Rayburn is not a Hostess employee, he receives no health or other benefits. Similarly, he is not included in any incentive plans that have been approved by the court for the wind down of the company,” a Hostess statement said.
Hostess declined further comment.