One of Australia’s oldest chocolate brands, Ernest Hillier Chocolates, has gone into voluntary administration. Its parent, Chocolate & Confectionery Company, said rising raw materials and shipping costs had significantly impacted margins.
Alan Walker and Glenn Livingstone from WLP Restructuring Partners have been appointed as the administrators and are seeking urgent expressions of interest from parties that could recapitalise or acquire the business and its assets.
The administrators are “moving with urgency” because manufacturing has been stopped and all 20 employees stood down.
Walker said, “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.”
The business’s distribution network spans Australia and New Zealand, with existing distribution arrangements with major supermarket chains including Woolworths, Coles, and Aldi. It also produces white-label chocolates for some of the world’s largest confectionery providers from its manufacturing facility in Coburg, Melbourne.
“The company operates a significant manufacturing facility in Coburg, and the Ernest Hillier and Newman’s brands have featured on the shelves of Australia’s supermarkets for many years.
“We expect these supply agreements, alongside its relationships with large multi-national food and beverage providers, may appeal to potential suitors,” he said.
The first statutory meeting of creditors will be held on 30 June 2023.
