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Wonder bread going to Tastykake
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NEW YORK (AP) — Hostess has found a new home for its most popular breads, including the iconic Wonder bread.

The bankrupt maker of Twinkies, Devil Dogs and other snack cakes said late Friday that it selected bids by rival bakery Flower Foods Inc. to buy six of its bread brands for $390 million. Flower Foods, based in Thomasville, Ga., is best known for Tastykakes but also makes breads including Nature's Own and Cobblestone Mill.

Hostess is expected to announce buyers for its famed dessert cakes in coming weeks.

Taken together, Hostess said those breads generated just under $1 billion in sales last year, with Wonder bread accounting for about half of that.

Court says post office

must do better by Gamefly

WASHINGTON (AP) — The U.S. Postal Service must come up with a better solution to a questionable pricing structure affecting Gamefly's video game DVDs and Netflix's movie DVDs, a federal appeals court said Friday.

Gamefly, which sends rental video games DVDS, must pay extra to mail its rental DVDs because they can be damaged by automatic mail sorting systems for first-class mail. But DVDs sent by Netflix Inc., which rents movie, TV shows and documentary DVDs by mail, don't go through the automated sorting process and it doesn't pay extra for hand-sorting. The court also said Blockbuster Inc., which rents video games and movies by mail, also seems to have received some of the favorable treatment that Netflix — apparently the post office's biggest DVD mailer customer — did.

Gamefly was denied the same treatment, forcing it to pay millions to keep out of the automated mail sorting system.

Judge: Tully's Coffee to

 go to Dempsey's group

 

SEATTLE (AP) — The auction for the beleaguered Tully's Coffee chain concluded Friday in federal bankruptcy court, with a judge approving the sale to an ownership group led by actor Patrick Dempsey.

Dempsey — dubbed "McDreamy" in the hospital drama "Grey's Anatomy" — had claimed victory last week after an auction, but a company that teamed up with Starbucks to bid for Tully's filed an objection.

AgriNurture Inc. had said it was still willing to proceed with its combined bid with Starbucks of about $10.6 million. The bid from Dempsey's company, Global Baristas LLC, which planned to keep Tully's intact, was for $9.2 million.