Australian confectioner Darrell Lea has entered voluntary administration,citing concerns over its ability to meet ongoing financial obligations.
The administrators,PPB Advisory,today(10 July)indicated they intend to sell Darrell Lea as a going concern.The owners of the group will provide short-term financial support to allow the business to continue to"operate effectively"while a buyer is sought.
With its portfolio of leading brands such as Rocklea Road,its network of owned and licensed stores and its 1,800 retail outlets across Australia,New Zealand and the US,it seems likely that the sale of Darrell Lea will attract widespread interest from private equity and trade buyers alike.
The Directors of Darrell Lea Chocolate Shops Pty Ltd and Ricci Remond Chocolate Company Pty Ltd("together Darrell Lea")have today appointed Mark Robinson,Jack Bournelis and Daniel Walley of PPB Advisory as Voluntary Administrators of the business.
Founded in 1927,Darrell Lea is an iconic Australian brand and a highly regarded manufacturer and retailer of confectionary products.Its products are sold through 69 owned and licensed stores and 1,800 retail outlets across Australia,New Zealand and the USA.Darrell Lea employs around 700 people across its Sydney based manufacturing facility and its retail network.
PPB Advisory's appointment follows an ongoing review of the business by its Directors and their concerns about Darrell Lea's ability to meet its ongoing financial obligations.
Mark Robinson of PPB Advisory said
"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."
PPB Advisory will update all stakeholders on any meaningful developments as soon as practicable.
Further information is available to creditors and employees under the Creditors Information section of PPB Advisory's website.
