Hostess Brand Inc., the creator of such classic American snacks like the Twinkie, Ding Dongs and Ho Ho's have filed for bankruptcy and will look to go through liquidation.
However handlers of the popular brand said buyers are waiting to purchase a few Hostess products, ultimately saving Wonder Bread and the Twinkie.
"Hopefully, someone will buy the brands, and some of the brands can live on, but that's a pretty small consolation for people who are out of work," chief executive Gregory F. Rayburn said in an interview on Bloomberg Television. "Somebody might buy the brand but that doesn't mean they're going to buy plants and equipment used to make the products."
According to the Christian Science Monitor, a number of companies like Con Agra and Flower Foods have contacted the stricken brand about doing business.
"This is an unfortunate situation and we are very sad for all those impacted," Keith Hancock, a spokesman for Thomasville, Georgia-based Flowers, said in an e-mailed statement. "We are staying focused on making sure our consumers and customers have the baked foods they need -- and on serving the market."
The news outlet tipped Mexican company El Grupo Bimbo to have the edge in gaining the services of Hostess. Grupo Bimbo is run by Mexican billionaire Daniel Servitje Montull and is the largest bread-baking company in the world.
Grupo Bimbo is looking to take advantage of lower sugar prices Mexico offers. Experts have specuated Hostess failed due to higher sugar tariffs in the United States.
The company fired many of its employees aftermass strikes.
"The problem has always been the cost structure, the union rules, the pension legacy, the pension cost and the cost structure," Rayburn told ABC Sunday.
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