One of Australia’s oldest chocolate brands goes into administration

One of Australia’s oldest chocolate brands has collapsed into administration and is seeking buyers urgently.

One of Australia’s oldest chocolate brands has collapsed into administration and is seeking buyers urgently.

On Wednesday afternoon, Chocolate & Confectionery Company Pty Ltd and a related entity appointed external administrators.

These entities owned and manufactured Ernest Hillier Chocolates, a prestige chocolate brand stocked in major supermarket chains, including Woolworths, Coles and Aldi.

Ernest Hillier Chocolates has been operating since 1914 and its products are supplied across Australia and New Zealand, all coming from a manufacturing facility in Coburg, Melbourne.

However, the supply chain crisis proved too much for the confectionary business, with the rising cost of raw materials and shipping fees significantly impacting margins, according to the company directors.

At the end of May, the department of State Revenue began winding up proceedings against the company over unpaid tax debts.

The company is more than 100 years old.

Alan Walker and Glenn Livingstone, partners at insolvency firm WLP Restructuring, have been appointed as the administrators.

They said in a statement provided to news.com.au they were “seeking urgent expressions of interest from parties that could recapitalise or acquire the business and its assets”.

They also revealed that all operations have ceased and employees have been stood down while they look for buyers.

“It’s unfortunate that such a storied chocolate manufacturer has encountered distress amid rising operating costs, but we are working with all stakeholders to do everything possible to save this iconic brand,” Mr Walker said.

“We are working closely with all affected parties as we move with urgency to understand the business’s affairs and find a suitable buyer or investor.

“While this process is underway, we have had to make the unfortunate decision to cease manufacturing activity and stand down employees at this stage.”

He added that these workers were on standby to restart production for the next owners, if a sale eventuated.

The first statutory meeting of creditors will be held at the end of this month, on June 30.

back in 2015, the chocolate maker also went into administration but it managed to turn the situation around.

The company has gone into administration before.

It comes as a number of restaurants across Australia have succumbed to the tough economic times in recent weeks and months.

Two weeks ago, news.com.au reported that one restaurant in a Sydney food chain called Flipp Burgers had gone into liquidation.

Just a few days earlier, Sydney restaurant, called Little Viet Kitchen, based in Manly in the city’s northern beaches, was court-ordered to close down after failing to pay an energy bill.

Controversial restaurant chain Karen’s Diner – which prided itself on having rude staff – shut down all its pop-up stores.

Two Hog’s Breath cafes in NSW also entered into liquidation at the beginning of June.

national restaurant chain Sushi Bay also collapsed, with its last remaining Sydney, Darwin and Canberra branches ordered to shut down, amid allegations that workers had been underpaid $650,000 over a number of years.

In March, a popular bar and burger joint in Melbourne’s inner city, The Beer & Burger Bar, went into voluntary liquidation owing around $500,000 to 10 unsecured creditors.

Also in March, Sydney’s Jellyfish Cafe, in the northern beaches, which specialised in seafood dishes and brunch favourites, went into liquidation after nearly two decades of operation.

Originally published as One of Australia’s oldest chocolate brands goes into administration