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Darrell Lea Sold But Over 400 Jobs Lost

September 4, 2012 • News

Chocolate and confectionary maker Darrell Lea has been sold with over 400 jobs to be cut as part of the deal. 

Picture: http://www.dlea.com.au/

PPB Advisory, the administrators for the 85-year-old company, yesterday announced the sale of Darrell Lea to the Quinn family, the Queensland-based owners of the VIP Petfoods company.

Founded in 1927, Darrell Lea is an iconic Australian brand and a highly regarded maker and retailer of confectionary products. The Quinn family plans to continue the legacy of the company, with Australian manufacturing and distribution to continue.  Products will continue to be sold through 1,300 licensed outlets, major grocery retailers and significant export customers.

As part of the sale agreement, PPB Advisory has initiated a further restructure of Darrell Lea to strengthen  manufacturing, marketing and distribution operations and secure the employment of 83 employees.

The ‘loss making Darrell Lea retail network however will not see a future with the new owners, with the Quinn family to cease operations from the 9 September.

‘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,’  PPB Advisory.

Employees affected by the decision will have all superannuation and wage entitlements paid in full, with PPB Advisory reporting they are 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 said: “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.”
The sale is expected to be completed this week.

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