The Directors of Darrell Lea Chocolate Shops Pty Ltd have placed the company in voluntary administration, leaving around 700 jobs at risk.
Founded in 1927, Darrell Lea is an iconic Australian brand and a highly regarded maker and retailer of confectionary products. The company produces over 1.3 million kilos of chocolate each year, with products sold through 69 owned and licensed stores and 1,800 retail outlets across Australia, New Zealand and the USA. Darrell Lea employs approximately 700 people across its Sydney based manufacturing facility and its retail network.
In March of this year, the company opened the first Darrell Lea concept store in Perth, with Commercial Manager of Darrell Lea, John Candi, believing the new design concept stores embrace the company’s rich heritage, offering a unique shopper experience, inspired by old-fashioned sweet shops and candy-land fantasy.
The fantasy might be over for the company however, as PPB Advisory has been appointed today, to handle the administration of the company.PPB Advisory’s appointment follows an ongoing review of the business by its Directors and their concerns about Darrell Lea’s capability to handle its ongoing financial obligations.
“We are undertaking an urgent review of the business with a view to preparing Darrell Lea for sale as a going concern. The owners of the business have agreed to provide some short term financial support whilst we undertake this process. We will work with all stakeholders including employees and their representatives, licensees, customers and suppliers to ensure the business continues to operate effectively,” administrator Mark Robinson said in a statement.
PPB Advisory will update all stakeholders on any meaningful developments as soon as practicable.