REVERE, Mass. – The New England Confectionery Co. (Necco) has been sold once again—this time in a deal that has shut down its Revere, Mass.-based facility entirely, according to a report from the Boston Globe.
Round Hill Investments LLC, a division of Greenwich, Conn.-based private-equity firm Metropoulos & Co.—the firm that acquired Necco for more than $17 million in May—confirmed in a statement to the Globe it had sold Necco to another candy manufacturer and closed the brand’s main facility.
Necco’s new owner has yet to be revealed.
Early reports after the May acquisition confirmed that Necco’s operations would continue until the facility’s lease expired in November; however, Round Hill has not confirmed whether the brand’s operations will continue at all.
Necco’s website is currently not accessible.
This concludes a muddled past few months for the nation’s oldest candy company. In March, Necco CEO Michael McGee revealed the struggling confectionery would lay off approximately 400 employees if it couldn’t find a buyer. No acquisition occurred.
The following month, Necco filed for Chapter 11 bankruptcy protection and was forced into to a federally mandated auction. Initial reports suggested that the Spangler Co., an independent confectionery company based in Bryan, Ohio, had acquired the candy brand in the auction for nearly $19 million; however, Necco confirmed a week later that Round Hill Investments had instead sealed the deal after Spangler withdrew its offer.
In mid-July, Necco’s bankruptcy trustee, Harold Murphy, sued the investment firm for breach of contract and misleading business practices, according to the Globe. Murphy declined to comment to CSP Daily News on Necco's new buyer and the facility's closure.
Necco, formerly based in Revere, Mass., produces brands including Necco Wafers, Sweethearts, Clark Bars, Sky Bars, Canada Mints, Candy Buttons, Mary Jane and Haviland Thin Mints. The 117-year-old confectionery company previously was owned by New York-based investment firm Ares Capital.
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