Archibald Candy files for Chapter 11

New York, Jan. 28 - Archibald Candy Corp. said it filed for Chapter 11 protection in the U.S. Bankruptcy Court in Chicago.

The company listed assets of between $50 and $100 million and liabilities of more than $100 million.

The Chicago parent of Fannie May and Fanny Farmer Candy noted that it already has an agreement to sell its Fannie May and Fanny Farmer brands, intellectual property and 31 company-owned retail stores.

Archibald has obtained a $13.5 million debtor-in-possession facility with LaSalle Bank, which will be used to fund the wind-down of operations and the sale of assets.

Archibald's Canadian subsidiary, Archibald Candy (Canada) Corp., is not affected and will continue to sell the Laura Secord brand in Canada.

Archibald previously announced the closing of its Chicago manufacturing plant and the phased closing of its 238 Fannie May and Fanny Farmer retail stores.

The Chapter 11 case number is 04-03200.

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