A week after the maker of Dum Dum lollipops won an auction for the New England Confectionery Co. (NECCO), the deal collapsed and the failed Revere candy company has been sold to the second highest bidder, according to U.S. Bankruptcy Court.
Judge Melvin Hoffman approved the sale to Twinkie owner Round Hill Investments for $17.3 million. The new deal comes after Spangler Candy Co., the high bidder at last week’s bankruptcy auction, asking the court for a discount on their $18.8 million bid.
Spangler told the court-appointed NECCO Trustee Harold Murphy that it would not close the deal without a substantial discount.
But Murphy rejected the proposal in a court filing. Murphy did not return a call seeking comment.
The resale was first reported in the Boston Herald.
Just last week, Spangler CEO Kirk Vashaw celebrated the purchase by saying “NECCO candy products have been around for more than 150 years, and share important historical significance with Dum-Dums, candy canes, and other Spangler Candy products.”
Round Hill, as the runner up bidder in the bankruptcy auction last month, formed Sweetheart Candy Co. LLC, an entity owned by Dean, Evan and Daren Metropoulos. They also own Hostess, Ghirardelli, Bumble Bee, Chef Boyardee, and Vlasic.
“We are extremely excited to bring our extensive background and expertise to bear in working to revive NECCO and its amazing brands, all of which have a special place in the heart of Americana,” said Evan Metropoulos, in a statement.
NECCO, the 171-year-old confectionary company on American Legion Highway, is best known for Necco Wafers, Mary Janes, and Valentine Sweethearts.
In March, CEO Michael McGee told city and state officials he intends to lay off 395 employees and close its manufacturing plant if a buyer can’t be found.
“We are thrilled to be partnering with the Metropoulos team given their impressive track record working with great consumer brands and strong commitment to supporting customers with outstanding products and service levels going forward,” said McGee in a statement.
