Wolfgang Candy Co. might have a new owner Friday morning.
Lancaster-based Food Management Systems Inc. has made an offer to buy the North York candy maker for $1 million, said Larry Young, an attorney representing Wolfgang.
A hearing is set for 9:30 a.m. Friday in U.S. Bankruptcy Court for the Middle District of Pennsylvania in Harrisburg, where chief Judge Mary D. France will rule on the potential sale.
The sale price, which includes nearly all of Wolfgang's assets, would be paid to the confectionery manufacturer's debt holder, M&T Bank.
Food Management Systems also would lease the real estate for $10,000 per month.
The Lancaster company has placed $1 million in escrow to pay the bank Friday if the sale is approved, Young said.
Having the money in an escrow account will help the sale avoid the delay it faced with a previous interested buyer, Birmingham, Ala.-based Divine Serendipity LLC, he said.
Divine Serendipity in August was approved to buy Wolfgang, but the firm never paid the $885,000 purchase price or $10,000 monthly lease to M&T Bank, attorneys said.
France vacated an order approving that sale last week, and the uncontested motion put Wolfgang back on the market.
In March, the candy maker filed for Chapter 11 bankruptcy protection after M&T didn't approve a partnership agreement that would have restructured Wolfgang's debt.
Still operating: The bank currently has a lien on Wolfgang's collateral, but M&T agreed last week to give Wolfgang up to $230,000 during the following two weeks to fund operations while Wolfgang sought buyers.
Young called it a "bare-bones budget" that prevented Wolfgang from operating at full capacity. If the sale is approved Friday, the candy maker will be able to increase production immediately, he said.
CEO Ben McGlaughlin last week said fall is one of Wolfgang's busiest seasons, as it works to fulfill orders for fundraisers and holidays.
If the sale is not approved, the company will consider other offers, Young said.
"We've had numerous offers. Food Management Systems' offer was a good, solid offer and the first one the bank approved," he said.
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