Twinkie Maker Hostess's CEO Driscoll Said to Quit; Rayburn to Replace Him
By Tiffany Kary – Mar 9, 2012 11:08 AM ET
Brian Driscoll, chief executive officer of bankrupt Hostess Brands Inc. (IBCIQ), will resign from the post and be replaced by Chief Restructuring Officer Gregory Rayburn, a person familiar with the matter said.
The maker of Twinkies snack cakes and Wonder bread filed for bankruptcy in January, less than three years after completing an earlier restructuring. The baker ended an earlier trip through bankruptcy court in February 2009 when buyout firm Ripplewood Holdings LLC and lenders took control of Interstate Bakeries Corp., which was renamed Hostess Brands (IBCIQ). The resignation will be announced today, said the person, who declined to be identified because the matter isn’t public.
Hostess blamed the latest bankruptcy on a weak economy and costs tied to pension- and medical-benefit obligations. Hostess had total assets of about $982 million and total liabilities of about $1.4 billion as of Dec. 10, according to court papers. The Chapter 11 case was assigned to U.S. Bankruptcy Judge Robert Drain in White Plains, New York.
Erik Halvorson and Blynn Austin at Hostess brands didn’t immediately return e-mail messages seeking comment on the resignation.
Interstate Bakeries was created through the merger of Schulze Baking Co. and Western Bakeries Ltd. in 1937, and grew by acquiring other companies, according to court documents filed in the first bankruptcy case. It acquired its biggest rival, Continental Baking Co., in 1995 for $330 million, according to the company’s website.
The company’s products include Hostess CupCakes, Ding Dongs, Drake’s Devil Dogs and Nature’s Pride breads.
The case is In re Hostess Brands Inc., 12-22052, U.S. Bankruptcy Court, Southern District of New York (White Plains).