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Updated 12:34 p.m.
It was business as usual this morning outside the Wolfgang Candy Company store on East Fourth Avenue in North York.
Customers continued to purchase their favorite chocolate treats, which Barney Ilgenfritz of Lower Windsor Township said he's enjoyed since childhood. "I remember my grandmother telling me all about Wolfgang," he said. "According to her, Wolfgang and Hershey's were the only chocolates ever made."
Ilgenfritz, standing outside the store with a bag full of goodies, said that if bankruptcy shut down the iconic York company, it would be a "double whammy" for him, since his wife works in sales for the company.
"York would lose its candy company and my wife would lose her job," he said. "But it's a little too early to tell what impact it will have."
His wife was not at work Tuesday and heard the news this morning at an employee meeting, Ilgenfritz said. He came to visit her and on his way out, purchased some candy at the store.
Kathy Slowik, of Spring Garden Township, also bought some chocolate at the store after dropping off a fund-raising form for her granddaughter. She said she enjoys the proximity of the factory and store.
"We live in the area and it's convenient," she said. "And when you come here, you always find something."
Updated 10:50 a.m.
Wolfgang Candy has filed for Chapter 11 bankruptcy protection after a partnership deal fell through that would have facilitated restructuring of the 91-year-old company, said Benjamin McGlaughlin, president and CEO of North York-based Wolfgang Candy Company.
However, operations will continue as normal at the company, which does not anticipate any layoffs, McGlaughlin said.
"Absolutely, we're open for business," he said.
Business can file for Chapter 11 bankruptcy with a federal bankruptcy court when they are unable to pay creditors. In Chapter 11, the business remains in control of its operations and is subject to the oversight and jurisdiction of the court.
The company was granted an interim order to use its cash collateral to pay its 90 employees as scheduled Friday, according to the filing. A hearing to finalize the order will be held Thursday.
Of the workers, 77 are hourly and 13 are salary employees.
Without the order, the company would be unable to pay its employees their wages and benefits and would have to shut down operations, the filing states.
McGlaughlin would not reveal details of the cancelled partnership deal, only saying that the company was in talks for a long-term partnership, but that the deal was rejected by the bank. The move forced the company to seek protection through bankruptcy.
"We obviously wanted to do this outside of (bankruptcy)," he said.
McGlaughlin said the company is continuing to look ahead for other opportunities.
"The worst of a lot of this is behind us," he said. "Our goal is to grow awareness for the Wolfgang brand and to seek out partnership opportunities."
The iconic York brand is not going anywhere, McGlaughlin said.
"We don't foresee that going away," he said. "We expect to be here for many years in the future."
Reported earlier:
In a release sent out today, Wolfgang Candy in York County reports that it filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Middle District of Pennsylvania.
The company said the process will enable Wolfgang to continue conducting normal business operations while they restructure their debt and other obligations.
Click here to read the statement from the company.
Click here to read the court filings.
Check back for updates.
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