Wolfgang Candy Co. is for sale-again.
A deal to sell the 91-year-old, North York candy maker was terminated Thursday morning because the potential buyer failed to pay the sale price.
Divine Serendipity LLC in August was approved to buy the confectionary manufacturer, but the Alabama-based company never paid the $885,000 purchase price or $10,000 monthly lease to M&T Bank, attorneys said.
Chief Judge Mary D. France today vacated last month's order approving the sale of assets, and the uncontested motion put Wolfgang back on the market.
In March, the candy maker filed for Chapter 11 bankruptcy protection after its debt holder M&T Bank didn't approve a partnership agreement that would've restructured Wolfgang's $4 million debt.
The bank currently has a lien on Wolfgang's collateral, but M&T agreed on Thursday to give Wolfgang up to $230,000 during the next two weeks to fund its operations while it seeks buyers.
"We have cash coming in the door and will continue operations," said Wolfgang CEO Ben McGlaughlin.
The company has received interest from local, potential bidders, but no formal negotiations or discussions occurred before Thursday's ruling, according to Larry Young, an attorney representing Wolfgang.
France's ruling now enables Wolfgang to consider other options, he said.
"The first offer the bank likes will be accepted, and we can move forward," Young said.
New offer coming: Divine Serendipity will also make a new offer, and CEO William "Wayne" Sellers said he will have financing in place within 10 days.
"Wolfgang is an excellent asset ... Let the games begin," Sellers said. "I fully intend to close the transaction."
Sellers has traveled from Birmingham , Ala. to the region during the last two weeks, hoping to buy "a company worth saving," he said.
"Life doesn't give you what you want or what you love. Life gives you what you fight for. That's why I'm up here fighting," Sellers said.
An unrelated, "baseless" lawsuit in Illinois, which alleges Divine Serendipity interfered with the sale of a sausage company, has stalled the financing he needed for the Wolfgang deal, Sellers said.
The difficult sale has caused concern among employees, but the management team has been keeping them abreast of the court proceedings, McGlaughlin said.
"Our employees are still behind us," he said.
In the meantime, Wolfgang will operate as usual and will continue to fill orders, McGlaughlin said.
"We're in the middle of one of our busy seasons this fall," he said. "We're still making an excellent product."
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