NEW YORK (TheStreet) -- Formerly bankrupt Hostess Brands, maker of Twinkies, will start trading as a public company on the NASDAQ under the ticker TWNK on Monday.
Hostess Brands is using a publicly traded special-purpose acquisition company (SPAC) called Gores Holdings (GRSH) because "it's a much more efficient way to get to the market," Hostess Executive Chairman Dean Metropoulos said on CNBC's "Power Lunch" on Friday afternoon.
"How is the Hostess today different from the Hostess that failed?" CNBC's Brian Sullivan asked Metropoulos.
"It's an entirely different model and a different company. It certainly failed because the balance sheet had been way overburdened with many liabilities," Metropoulos answered. The Hostess Brands that went bankrupt was not efficient, he said.
One of the changes made to the brand was the shelf life of Twinkies, which was extended from 28 days to 65 days by using "moisture and natural enzymes," he said. This update has been important to the positive turnaround at the company.
While his company C. Dean Metropoulos & Co. has bought over 80 businesses in the past 30 years, Hostess Brands stood out as an "unusual" company that had "tremendous nostalgic connection" with consumers, Metropoulos noted. "We knew if it was cleaned up and managed properly in a different model, it would be very successful."
Hostess Brands generated $620.8 million in revenue and $88.8 million in profit last year, the Wall Street Journal reported.