CHICAGO-As GlobeSt.com reported Wedensday morning, Hilco is now marketing 61 assets formerly owned by bankrupt Hostess and not branded to any of the firm’s products. Here is a complete list of the properties being marketed to date.
The original story appears below:
CHICAGO-This morning news broke that some $800 million of Hostess branded assets, including trucks equipment and real estate, would be sold to a variety of investors. As GlobeSt.com reported a few weeks back, Hilco Real Estate, based in Northbrook, IL, has landed the sizable assignment of disposing of the non-branded assets left behind after the bankruptcy.
Now we know that there is a list of some 61 assets spread around 22 states and not specifically attached to a Hostess brand that are to be sold off. And in future weeks, the executives tell us, that inventory is set to double.
Actually, the sale involves more than just real estate. “We have a global role,” says SVP Joel Schneider Sr. In addition to “helping to liquidate all of the remaining Hostess locations that aren’t being sold as part of a brand sale, our industrial folks have been hired to sell all of the machinery and equipment and all of the rolling stock.”
Schneider was hesitant to place a value on the sale in part because the total number of assets to be sold has not yet been released to Hilco. Buyers of specific Hostess brands, such as its snack-cake lines, “have identified properties they want to take along,” explains Geoff Schnipper, distribution VP. “Those sales have pretty much concluded.”
There was a list of 92 properties in that asset purchase agreement,” he explains, and the buyer was allowed to take 30. The remainder will go, probably in the next two weeks, to Hilco.
In these initial stages of marketing, the Hilco executives say, interest has been both brisk and broad-based. Users looking to establish or relocate their companies and portfolio buyers have expressed interest.
In addition, since many of the assets, which consist primarily of manufacturing, distribution and retail (or in the lingo of Hostess, “depots”) are “of the ‘60s and ‘70s” vintage, developers are also a prime target for purchase.
Schneider says a prime focus of the sale is the expedient closing of the portfolio, but he has no specific timeframe other than to say he expects most assets will be through the pipeline within the year. June 12 is the bid deadline.