Bankrupt Hostess Brands Inc., the maker of Twinkies, is in talks with potential buyers and unions as it tries to stave off liquidation of the once-iconic American baked goods company, Reuters reported yesterday. The outcome was far from certain as any deal to sell the company would hinge on Hostess' success in resolving labor issues. Industry analysts believe that private-equity firms are likely suitors, while Hostess's brands could also be a target for food companies such as Mexico's Grupo Bimbo and U.S. baker Flower Foods Inc., which on Thursday was looking for acquisitions in the industry. Hostess this month warned its 18,500 employees that they may be laid off by mailing notices. Hostess will go back to bankruptcy court on June 5 for a trial on whether it can reject deals with 10 smaller unions, covering collective bargaining agreements for nearly 1,200 employees.
