Company is likely to sell equipment, real estate, say Oswego County officials.
View full sizeDave Smith (left) and Pat Haney look at Petzholdt Heidenauer chocolate refining machines from Germany at the Fulton chocolate factory, formerly Nestle's, in Fulton. Bankruptcy court accepted a bid for the factory and its contents from an asset distribution company.Syracuse, NY -- The $2.5 million bid from GoIndustry DoveBid was accepted in U.S. Bankrupcty Court Wednesday afternoon to buy all assets of New York Chocolate and Confections Co.
Partners in GoIndustry DoveBid would not comment after the nearly 39 minute court preceeding was over.
According to its website, GoIndustry DoveBid "is a leading industrial asset management, auctioneer and valuation specialists." GoIndustry was the lead name on the bid, with other entities in the bid being Union Confectionary Machinery Co., Loeb Equipment Supply, Aaron Equipment and Carbonstead LLC.
L. Michael Treadwell, executive director of Operation Oswego County, the county's economic development agency, said he believes the company's intentions are to resell the candy making equipment and real estate because "they are involved in asset management and asset distribution."
He said it "is getting much less likely" that the site will be used for chocolate manufacture again. Treadwell hoped a company in the candy- or chocolate-making business would buy the assets and open it again as a chocolate company.
In fact, Treadwell so wanted this to happen that Operation Oswego County also bid $1 million for all the assets of the former New York Chocolate. "We thought this was in the best interest of the community to maintain it as it is and try to continue to market it," Treadwell said.
Operation Oswego County was named the backup winning bid in the event GoIndustry DoveBid cannot close on the sale.
The bankruptcy auction began with a short discussion of the break-in late Monday ro early Tuesday at the former chocolate plant. New York Chocolate’s lawyer Geoffrey Raicht said the police reported to him that there was minor damage to one building (Building 95) and it was “kids who got in at some point and used fire extinguishers” inside the building.
Raicht said all bidders were advised of the burglary. Officials with GoIndustry DoveBid and Operation Oswego County inspected the plant to be sure what they were bidding on was intact.
An overnight watchman has been hired to keep an eye on the site until the sale closes.
New York Chocolate took over the Fulton plant after Nestle closed the factory in 2002. Optimism grew when a company led by the Ivory Coast's cocoa control board -- a group of growers, banks, insurance companies and the government -- bought the former chocolate factory.
The small French-speaking West African nation is the world's largest cocoa producer.
But the New York Chocolate and Confections Co. had difficulties getting off the ground and was mired in lawsuits, investor bickering and rumors of embezzlement and money laundering.
GoIndustry DoveBid has 14 offices in the United States and offices in Belgium, France, Germany, Ireland, Spain, United Kingdom, Canada, Mexico, Australia, China, India, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and South Africa.