The idea for the Primrose Candy Company was born after World War I, and the company was founded with only $500.
Frank C Puch made the move back in 1928, and Primrose has been producing confectionery for most of the past 100 years, with a product catalog that includes salt water taffy, hard candies, lollipops, popcorn, caramels and a variety of other sweets.
But Primrose’s days may be numbered.
According to the Wall Street Journalthe company has been hit by pressure from having to contend with rising domestic sugar costs and competition from low-cost imports. Now, the outlet reports that the company has filed for Chapter 11 bankruptcy.
This happened on January 27 “as the company seeks to restructure its financial obligations while maintaining its manufacturing operations in the Midwest,” according to RK Consulting’s X post.
Primrose listed assets between $1 million and $10 million and liabilities between $10 million and $50 million in its filings, the Wall Street Journal reported.
RK Consulting’s post said the company continues to “operate a 130,000-square-foot manufacturing facility in Chicago, although it has faced significant headwinds recently, including the loss of two major contracts for lemonade production worth approximately $1 million per year.”
The company previously settled a class-action lawsuit for $125,000 that accused it of collecting employee fingerprints without disclosure and without written consent, which is required by Illinois’ Biometric Information Privacy Act, the Wall Street Journal reported.
“Without admitting any fault or liability, in exchange for waiving all claims related to the collection of biometric information, Defendants agree to pay up to $125,000 to settle settlement class members, to pay plaintiffs’ service awards as ‘class representatives,’ to pay attorneys’ fees and expenses to class counsel, and to pay settlement administrative costs,” the settlement website reads.
Read the original article at pennlive.com.