Fulton, NY - New York Chocolate and Confections Co., which filed for bankruptcy protection in April, will sell its assets later this month. The deadline to submit bids to buy the Fulton-based New York Chocolate’s buildings, production equipment and other assets is June 28. The bids are expected to be reviewed at 10 a.m. June 30 at U.S. Bankruptcy Court...
Fulton, NY - New York Chocolate and Confections Co., which filed for bankruptcy protection in April, will sell its assets later this month.
The deadline to submit bids to buy the Fulton-based New York Chocolate’s buildings, production equipment and other assets is June 28.
The bids are expected to be reviewed at 10 a.m. June 30 at U.S. Bankruptcy Court in the federal building in Syracuse. If there is more than one qualified bidder, an auction could take place.
At least 14 investors have shown interest in buying some or all of the assets, and have entered into a confidentiality agreement to further evaluate the assets, said L. Michael Treadwell, executive director of Operation Oswego County.
“We know in fact there are several potential investors that are interested in buying the assets for chocolate production,” Treadwell said. “But there also are investors who are only interested in real estate and the acquisition of equipment for purposes of either reselling it, or relocating it to another manufacturing facility.”
U.S. Bankruptcy Judge Margaret Cangilos-Ruiz will review the bid proposals and decide who is awarded the assets. She will base her decision on several factors, including how much money New York Chocolate would receive and what impact it would have on the community, Treadwell said.
New York Chocolate plans to use that money to pay off debts, totaling roughly $1.2 million, Treadwell said.
Operation Oswego County is the company’s largest creditor, Treadwell said. It loaned the confection company $850,000, and the company is current on its payments. Fulton Mayor Ron Woodward Sr. said New York Chocolate and Confections has paid its city, county and school taxes. New York Chocolate’s city and county tax bill was $140,318.07, according to City Chamberlain James Laboda. Its school tax bill was roughly $140,000, Laboda said.
The company owner, Comite de Gestion de la Filiere Cafe Cocoa, has set up an account to pay its bills, Treadwell said. Comite de Gestion consists of four people from the Ivory Coast.
About three weeks after New York Chocolate and Confections filed for bankruptcy, Operation Oswego County and New York Chocolate’s chief restructuring officer sent information about the assets to 840 companies in 76 countries, Treadwell said. The marketing initiative targeted only companies that employ more than 250 people and have sales in excess of $5 million — and are involved in chocolate or candy-making production — with hopes of generating potential buyers who would want to make chocolate in Fulton again.
In September 2003, the contents of the former Nestle plant in Fulton were auctioned. At that time, some of the equipment was purchased by a group that became New York Chocolate.
New York Chocolate and Confections purchased the former Nestle plant in December 2003, seven months after the plant closed its doors, putting more than 400 people out of work.
At its peek in 2005, New York Chocolate employed nearly 80 people, Treadwell said. It made chocolate powder, cocoa butter and other chocolate products, he said. But the plant never produced chocolate bars.
Today, New York Chocolate has four employees, Treadwell said. The employees maintain the equipment and have been showing the facility to potential bidders, he said.
“Our primary mission is to find a buyer that will reopen the plant to manufacture chocolate and chocolate-related projects or to find buyers who will be able to use a portion of the facility for chocolate production — and the balance for some other type of use,” Treadwell said. “What we’d least like to see is all the equipment sold and the building left vacant.”
New York Chocolate will no longer exist after the assets are sold, Treadwell said.