Hostess is expected to disclose Thursday that Flower Foods, makers of Tastykakes and Nature's Own baked goods, and Mexican bakers Grupo Bimbo are stalking-horse bidders for the Irving, Texas, company's 30 or so brands and 36 plants, said sources familiar with the talks.
The 88-year-old company created iconic junk food brands such as Twinkies and Zingers, and other baked goods like Wonder Bread and Nature's Pride products. It filed for bankruptcy in 2004 and then again in January.
Managers decided to liquidate after the bakers union refused to accept cuts in pay and benefits and went on strike.
Walmart and Kroger are also expected to bid for Hostess in the bankruptcy-court auction, though are not considered to be early bidders, the Journal reported.