James Candy Company (JCC) filed voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey. JCC anticipates the process of reorganization to move swiftly as it continues negotiations with creditors and outstanding vendors.
JCC will continue to operate its James’ Candy, Fralinger’s Salt Water Taffy and Bayard’s Chocolate Stores as well as its online mail order business. Customers should not expect any changes in operations and product fulfillment during the 2018 holiday season and thereafter. The company plans to continue payment of employee wages, benefits, vendors and suppliers in the ordinary course for all goods and services provided on or after the filing date.
According to a court filing, the company has three secured creditors: OceanFirst Bank, Marlin Business Services and Mercedes Benz Financial Services. First Lien lender OceanFirst Bank has committed $5.257 million in pre-petition cash collateral financing.
“The combination of reduced Atlantic City visitors and boardwalk foot traffic since 2006, the under-performance of 2018 summer sales along the New Jersey seashore and the continuing increased cost of business operations has impacted our efforts to remain a profitable business. Over the last several years we have worked very hard to transform our business and cut costs. While these efforts made great strides, the plan was not able to deliver the results the company needed. The process of Chapter 11 will give JCC the ability to strengthen its operations and balance sheet, EBITDA and return to a profitable position. We have already begun to work with creditors, vendors and other business partners to maintain service to our customers,” said Frank J. Glaser, president and CEO of JCC.