The Twinkie needs no introduction, but the creamy, golden, iconic cake has made a sweet comeback.
Although Hostess, the American bakery behind childhood staples such as Twinkies, Ding Dongs and Ho Ho's, launched a process to sell itself earlier in the year, they may scrap the sale and instead go public.
Some investors believe the company could raise more than $2.5 billion in an initial public offering, according to a new report from Reuters. Multiple suitors have made offers in that range, according to reports, but Hostess turned them all down in recent weeks.
That's quite a turnaround for a company that just three years ago was bankrupt and temporarily out of business. In 2012, the company filed for bankruptcy, because of heavy debt and and high wage and pension obligations to its workers. Nearly 18,500 people lost their jobs after a strike forced the company to close bakeries and storefronts nationwide.
Then, in 2013, Hostess cakes were acquired by Apollo Global Management and Metropoulos & Co. Soon after, the snack cakes hit the shelves again and the sweet and spongy treats have taken off ever since.
Dean Metropoulos, who, along with Apollo Global Management purchased the company for $410 million told Reuters it was premature to talk.
"In recent weeks, Metropoulos & Co and Apollo Global Management have received proposals for both the sale of Hostess Brands and an IPO. At this time it is premature to consider either alternative. Hostess has experienced a tremendous turn around in the past two years and we are excited to continue to build upon the strong growth of these iconic American Brands," Metropoulos said in a statement.
