Remaining Darrell Lea shops set to close
Darrell Lea is closing its remaining 27 company-owned stores, with 418 jobs to go.
The remaining company-owned Darrell Lea shops will close, but new owners have been found to keep the chocolate factory running.
The Lea family has ended its involvement with the chocolate company that bears its name, selling it to the Quinn family for an undisclosed sum.
However, there was no interest from any buyers in taking over and trying to turn around the loss-making retail outlets.
That means the remaining 27 Darrell Lea company-owned stores will close on September 9, with the loss of 246 permanent and 172 casual jobs.
Last month the closure of 32 Darrell Lea stores was announced after the company was placed into voluntary administration.
The administrators, PPB, say the decision to close the remaining retail outlets ensures the viability of the factory, saving 83 manufacturing and administrative jobs.
"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," said PPB's Mark Robinson in a statement.
"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."
The chocolates and other sweets produced by Darrell Lea will continue to be sold through its network of 1,200 licensed retailers, existing wholesalers and exported overseas.
The administrators say employees will receive all their wage and superannuation entitlements in full, and it is working with unions and the Federal Government to secure all other entitlements.
The sale is expected to be completed by the end of the week.
The Quinn family from Queensland own VIP Petfoods.
The Lea family started the confectionary company 95 years ago but placed it in voluntary administration in July.
In a statement the Lea family says it has been a difficult time for everyone involved.
Source: ABC News, 3 September 2012
