NOVEMBER 13, 2019 UPDATE — TERMINATED EMPLOYEES WILL FINALLY GET THEIR PAYCHECKS
It appears that Spangler failed to complete its announced purchase of Necco and the properties were then sold to Greenwich, Connecticut-based Round Hill Investments out of bankruptcy for $17.3 million.
Round Hill will pay $790,000 to employees who were left without pay when the company abruptly closed its doors. Round Hill moved immediately to sell off portions of the Necco portfolio to an unknown candy maker.
This payment apparently resolves the final issues with the bankruptcy proceedings.
SEPTEMBER 28, 2018 — BRANDS & MACHINERY ACQUIRED
Perhaps there is hope for those of us who like Necco wafers and Sweethearts. It appears that Bryan, Ohio-based Spangler Candy Company, the makers of Dum Dum lollipops, has purchased the brands and machinery from NECCO (New England Confectionery Company). The company believes the brands might return to the shelves in a number of months. Great for candy lovers, not so great for NECCO’s original employees based in Massachusetts.
JULY 30, 2018 -- COMPANY "UNEXPECTEDLY" SHUTS DOWN
It should not have been a surprise to the employees because the handwriting was clearly on the wall ...
"The owner of a company that makes sweets such as Necco wafers and Sweethearts, unexpectedly shut down operations at its Massachusetts plant, CBS reported.
Round Hill Investments LLC announced on Tuesday it is selling Necco brands to other confection manufacturer and closing down its Revere plant.
According to CBS, the company recently purchased Necco for $17.3 million at a bankruptcy auction in May.
Necco's new owner was not identified, and Round Hill has not announced whether candy production will resume. Almost 230 workers were shocked when they were told to pick up their final paychecks on Friday." <Source>
Original Post ...
New England Confectionery Company, better known as NECCO, the makers of the iconic NECCO Wafers, Sweethearts, and the Clark Bar, appears to be searching for a buyer in order to allow for continued operations.
The alternative is the plant closure in Revere, Massachusetts and the layoff of their 395 employees.
The company is owned by the Ares Capital Corporation, one of the leading specialty finance company that provides financing to private middle-market companies. Because of the success of the individual candy products, it is likely that the brands will be sold to another manufacturer without the burden of the existing debts and infrastructure. NECCO sold their building last year for $55 million and pledged that the company would continue operations to August 31, 2018.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?