As seen in Law360’s “Hostess Brands Look Appetizing To Rivals, PE Firms”
Law360 is covering the recent decision of Hostess Brands Inc. to liquidate and shut down operations in light of a lengthy employee strike. The company had previously filed for bankruptcy in January and may now sell off several of their valuable brands to competitors in the food industry as part of the proceedings. However, selling off entire branches of the company, including bakeries and distribution centers, would require the new owners to pay the striking bakery workers at least part of the unfunded pension liability the unions claim is owed to Hostess employees.
According to Kaye Scholer Partner Paul Llewellyn, co-head of the firm’s Trademark, Copyright and False Advertising practice, it might be more profitable for prospective buyers to focus on purchasing the intellectual property rights rather than the assets of the company.
"To pick up the brand name and product formula is much more clean than picking up an entire division of the company," Llewellyn says. "There could be a lot of value just in the trademark value."
Also of Interest
- Law360 Names Blank a 2016 Intellectual Property MVP December 7, 2016 • Recognitions
- Second Circuit Expands Split on Nominative Fair Use November 16, 2016 • Articles
- US News–Best Lawyers Recognizes 32 Kaye Scholer Practices and 41 Lawyers November 1, 2016 • Recognitions
- Maier Plans Emergency Response with Fort Meade and Fort Detrick Commanders October 20, 2016 • Client Successes
- Winning the War: Strategies for Prevailing in Consumer Fraud and False Advertising... October 17, 2016 • Articles
- Consumer Products in the Age of Big Data October 4, 2016 • Articles
- Shape of Things to Come: Protecting Product Configuration and Packaging Design September 26, 2016 • Articles
- On the Road to a Safe and Secure Internet of Things: What Companies Should Do September 19, 2016 • Articles
- Consumer Products: Adapting to Innovation Fall 2016 • Reports / Newsletters