Wolfgang Candy Co. files for bankruptcyTim Stuhldreher
Wolfgang began restructuring in the fall, and as part of that process had negotiated a partnership agreement with another company, CEO Benjamin McGlaughlin told the Business Journal this morning.
However, Wolfgang's bank, M&T Bank, would not approve the deal, necessitating Wednesday's filing, McGlaughlin said.
Business will continue as usual while the case proceeds, he emphasized.
"We had fundraising orders shipping out yesterday," he said.
Wolfgang's debts total between $1 million and $10 million, according to its bankruptcy petition, filed in the U.S. Bankruptcy Court for the Middle District of Pennsylvania.
Accompanying the petition is a motion requesting permission to continue disbursing cash for wages and salaries and other business expenses. The money is part of the collateral securing Wolfgang's financing from M&T Bank, so the bank or the court must approve its use, Wolfgang's filing said.
Wolfgang has 77 hourly and 13 salaried employees, it said in the motion.
Chief Bankruptcy Judge Mary France has set a hearing on the motion for 2 p.m. Thursday.
M&T Bank spokeswoman Sabrina Berdzik could not immediately comment on the case.
Wolfgang was founded in 1921 and is one of the oldest family-owned candy companies in the U.S. It is best known in the catalog fundraising sector, in which organizations sell Wolfgang products to raise money for their activities.