Hostess Brands Inc. is close to securing initial bids for its Drake’s cake business and four bread operations that could net the bankrupt bakery company more than $50 million, according to a source familiar with the matter. An announcement of the deals, part of the company’s bankruptcy reorganization, could come on Monday, according to the source, who requested anonymity because the talks are not public.
Collegedale, Tenn.-based McKee Foods, maker of Little Debbie snack cakes, is expected to offer roughly $27 million for Drake’s, which makes Devil Dogs, Ring Dings and Yodels, said the source, noting negotiations were ongoing so the final price could change