PPB: announces sale of Darrell Lea

Sydney / AU. (ppba) The Voluntary Administrators of Darrell Lea Chocolate Shops PTY Limited and Ricci Remond Chocolate Company PTY Limited – together «Darrell Lea» – advised that they have agreed the sale of Darrell Lea to the Quinn family, owners of a successful and profitable Australian consumer goods company. The sale is expected to be completed this week.

The Quinn family is the owner of a proven and well recognised consumer products manufacturer and wholesaler and has a wealth of experience in food manufacturing and distribution. Their experience will help Darrell Lea to continue to operate as an iconic Australian manufacturing company with a strong brand presence.

As part of the sale agreement, PPB Advisory has initiated a further restructure of Darrell Lea to strengthen its manufacturing, marketing and distribution operations and secure the employment of 83 employees (see also: Darrell Lea faces rocky road ahead – b:eu on 2012-07-11).

Under the restructure, the remaining 27 Darrell Lea company-owned stores will cease trading on 09 September. These stores have been consistently loss making for a number of years and did not attract any meaningful interest during the sale process.

Darrell Lea sales will continue to be maintained through the network of 1’200 licensed retailers, the existing wholesale customers and through the significant export channel.

Through the restructure, the roles of 246 permanent and 172 casual employees will regrettably be made redundant. While this is unfortunate, the decision is necessary to strengthen the manufacturing and distribution operations, and ensure employment is secured for 83 manufacturing and administrative staff.

Those employees affected by this decision will have all superannuation and wage entitlements paid in full. PPB Advisory is working closely with the Australian Manufacturing Workers Union (AMWU), the National Union of Workers (NUW), the Shop, Distributive + Allied Employees Association (SDA) and the Federal Government to try to secure all remaining entitlements.

Mark Robinson of PPB Advisory: «This sale represents the best outcome for Darrell Lea and it ensures that this iconic Australian brand and its manufacturing operations can continue to operate locally and stay Australian-owned. The sale follows an extensive review of a number of offers presented to PPB Advisory, and we are confident that the Quinn family has the necessary skills and experience to take the business forward».

«It is regrettable that we have had to make a number of very dedicated employees redundant. However, the result is the best outcome that could have been achieved in these circumstances».

«We can confirm that under the sale terms, 83 employees will be offered employment with the new owners, the manufacturing facilities will continue to operate, and Darrell Lea product will still be available through over 1’200 licensed outlets across Australia, through the existing grocery outlets and internationally in the USA, Canada and the United Kingdom».

«We would like to thank Darrell Lea´s employees, customers and suppliers and for their support during this difficult period, which has enabled us to preserve this iconic Australian brand. We are working with all parties to ensure the sale is completed by the end of this week».