The owner of Hostess buys the Playboy Mansion after only two years of reviving the iconic brand. Daren Metropoulos, principal at private equity firm Metropoulos & Co.,
which owns Twinkies-maker Hostess Brands,
has entered a contract to buy the Playboy mansion in Holmby Hills, a Los Angeles neighborhood near Beverly Hills.
After over eighty years of building an iconic brand, Hostess finally went out of business after over a decade of of two bankruptcies and five different CEO’s, Amazingly the last corporate management left with huge bonuses just to close down the company, while reducing worker pay and huge layoffs. It is obvious the last management of Hostess came in just to shut it down, reduce the value, and open the door for a different wealthy class to come in and re-profit. Hostess left behind 36 factories, 5,600 delivery routes and 19,000 jobs, creating something of a national mourning.
However, the new factory is bright and clean and much more efficient. Rows of Twinkies move along the $20 million Auto Bake system with extreme consistency. Robotic arms stack the Twinkies. This plant operates with only 500-person plant produces more than 1 million Twinkies a day, which is 80% of Hostess’ total output–output that under the old management, that required 14 plants and 9,000 employees. Hostess is about to get more efficient because they have just installed a second Auto–Bake system for Cup Cakes. It is obvious change was needed.
After just two years after buying the defunct company, there is approximately believed to be a $2 billion win for the small group of Hostess owners. That’s more than enough for the primary owner of Hostess to buy the Playboy Mansion.