PHILADELPHIA (CBS) — James Candy Company, the maker of South Jersey’s Fralinger’s Salt Water Taffy, has filed for Chapter 11 bankruptcy protection.
Since 1880, James Candy Company has served customers in 11 stores throughout South Jersey, including multiple locations on the Atlantic City Boardwalk.
But reduced foot traffic and underperforming sales this summer has impacted the business, the company says.
“The combination of reduced Atlantic City visitors and boardwalk foot traffic since 2006, the underperformance 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.
The company says they 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.
There will be no noticeable changes to this year’s holiday orders.
“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,” the company says in a statement.
James Candy Company anticipates the process of reorganization to move swiftly as it continues negotiations with creditors and outstanding vendors.