A private equity firm has acquired the assets of bankrupt Sugarfina.
Bristol Luxury Group LLC announced that it purchased substantially all of the assets of Sugarfina and its affiliates in a sale recently approved by the U.S. Bankruptcy Court for the District of Delaware. The deal was put at about $15.1 million by the Wall Street Journal.
The candy retailer filed for Chapter 11 bankruptcy protection in September, saying the process would allow it to complete the “open and competitive process” it launched two months ago to sell its assets. It also said it was closing six of its locations.
“Like many retail brands, Sugarfina has been negatively impacted by a challenging retail environment, particularly in malls where many of our boutiques are located,” said Sugarfina co-founders Josh Resnick and Rosie O’Neill in a statement at the time of the filling. “After careful review of a wide range of available options, we determined that an organized restructuring of the company is in the best interests of all parties, including our valued customers, partners and employees.”
Sugarfina, known for its luxury candies such as Champagne gummy bears, iconic packaging and high-end shops, operated 44 locations, including 11 shop-in-shops in Nordstrom stores at the time of the filing. The company had been expanding its brand globally prior to its bankruptcy filing. Sugarfina reported losses of $17.9 million in 2018. Its net sales totaled $47 million in net sales, with $23.6 million coming from retail operations and almost $12 million coming from wholesale. E-commerce, corporate and international and travel sales make up the remaining revenue.
Bristol's majority owners are Diana Derycz-Kessler and Paul L. Kessler. Barlock Capital and Scott LaPorta join the Kesslers as co-investors.
"We are thrilled to own the Sugarfina brand and the market opportunity to dynamically expand distribution through an omnichannel strategy providing consumers a sweet luxury experience," said LaPorta, who is serving as CEO of the newly formed Sugarfina USALLC operating company.