Necco’s Fate Lies On The Auction Block
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The future of the chalky Necco Wafer is in the hands of the highest bidder.
Revere-based New England Confectionery Co. (Necco) filed for Chapter 11 bankruptcy in April and asked the U.S. Bankruptcy Court for permission to sidestep a required auction in order to complete a $13.3M sale to Boston-based liquidator Gordon Brothers. The court did not grant the company’s request, and a bankruptcy auction is scheduled for May 23, the Boston Globe reports.
Gordon Brothers has committed to operate the company, which dates back to 1847, through November. The liquidator is underway with the closing and liquidation of Toys R Us. The future of the candy company remains unclear beyond November and sooner if a non-Gordon bidder wins the auction. Cash bids of at least $13,961,900.18 are required and must be submitted by May 18 to qualify for the auction.
The company has had a troubled 2018. Necco CEO Michael McGee informed Massachusetts officials and the Revere mayor his company would have to lay off roughly 400 employees if it couldn’t find a buyer by May. The company filed for bankruptcy protection in April after three creditors attempted to force it into involuntary bankruptcy after they claimed they were owed over $1.6M.
Necco operates from an 810K SF Revere factory, which was sold in May 2017. Its lease for the warehouse ends in August.