It is “unlikely” that unsecured creditors of Archibald Candy Corp., including some of the largest candy suppliers in Chicago, will recover any of the money they are owed, federal bankruptcy court Judge Pamela Hollis said Thursday.
Hollis made the comment during a hearing in which attorneys for Archibald outlined plans to auction the company’s assets. The auction may not generate enough cash to pay the $84 million owed secured creditors and bondholders.
Utah-based Alpine Confections Inc. has offered $18 million for the Fannie May and Fanny Farmer brands, and the company’s 31 stores. Attorneys said the company’s West Loop factory could net another $20 million. Archibald filed for bankruptcy protection on Wednesday.
Among the creditors that may be left with large bills are Blommer Chocolate and Superior Nut & Candy. Blommer is owed more than $850,000, while Superior is owed nearly $500,000.
