An anonymous source has said there are about two-dozen bidders for assets being sold by Hostess Brands Inc.
The source, who is familiar with the matter and wanted to remain anonymous due to the confidentiality of the process, named Wal-Mart and Kroger to be two contending companies bidding for assets, according to Bloomberg.com.
Joshua Scherer, a financial advisor of Perella Weinberg Partners LP, said about $1 billion could be generated by the Hostess liquidation sale.
According to Bloomberg.com, "The 82-year-old maker of Hostess CupCakes, Ding Dongs and Ho Hos said last month that it would liquidate and fire more than 18,000 workers after failing to reach agreement with its striking bakers' union on concessions to help it emerge from its second bankruptcy. Changes in American diets led to years of declining sales at Hostess, while ingredient costs and labor expenses climbed."
Hostess, Wal-Mart, Kroger and multiple other company representatives declined to comment on the auction process.