Australia’s oldest chocolate brand Ernest Hillier collapses into voluntary administration
Ernest Hillier Chocolates has entered voluntary administration for a second time, with the rising cost of raw materials and shipping squeezing its margins.
One of Australia’s oldest chocolate brands has entered voluntary administration for a second time, with the rising cost of raw materials and shipping squeezing its margins.
Ernest Hillier Chocolates was founded by English migrant Ernest Hillier in Sydney in 1914 and is thought to be Australia’s first chocolate manufacturer.
Its Hillier’s and Newman’s branded chocolates can be found in major supermarket chains in Australia and New Zealand, including Coles, Woolworths, and Aldi. The manufacturer also produces white-label chocolates for large multinationals from its facility in Coburg in Melbourne’s inner north.
In 2015, the company was placed in voluntary administration, after having been sold a year earlier by its owners, the Piedimonte family, to British private equity outfit Re:Capital and local private investors. At the time, it employed 60 staff and was turning over between $15 million and $25 million annually.
The company was rescued in 2015 by current owner Chocolate & Confectionery Company Pty Ltd, which the Herald Sun reports is backed by Hilco and a number of other investors including directors Denzil Tong and Darrell Houston.
Administrators Alan Walker and Glenn Livingstone from WLP Restructuring were on Wednesday appointed to manage Chocolate & Confectionery Company Pty Ltd and its related entity.
In a statement provided to SmartCompany on Wednesday, the administrators said the company’s manufacturing activity has been halted and all 20 employees have been stood down.
The administrators are now seeking urgent expressions of interest from potential buyers for the business and its assets, and say the workforce is available to restart work when needed.
“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,” said WLP Restructuring partner Alan Walker.
“We are working closely with all affected parties as we move with urgency to understand the business’s affairs and find a suitable buyer or investor.”
“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.”
The first statutory meeting of creditors is scheduled to be held on June 30, 2023.
