Fannie May may close
January 13, 2004
DeKalb’s Fannie May candy store will be one of the company’s 228 stores that will close by mid-February if a buyer for the company is not found.
Archibald Candy Corporation announced it will begin closing its Fannie May and Fannie Farmer stores after announcing last week it has ceased production at its Chicago factory. More than 100 of the stores are located in the Chicago area.
The company is in negotiations with a potential buyer and expects to announce a sale of the Fannie May brand, stores and recipes if it is made before all stores are closed.
“The orientation of the company in the future will be up to the new owner,” Archibald spokesman Ron Bottrell said. “We expect some [stores] to be in operation.”
The company’s 70-year-old Chicago factory will close permanently even with a new buyer, Bottrell said, leaving 625 people without jobs. Former employees are receiving counseling and assistance in finding jobs, he said.
DeKalb’s Fannie May shop, 223 E. Lincoln Highway, refused to comment on any aspect of the closures, citing instruction from company management.
The company had been refusing to accept services from the Candy Institute/Food Chicago, said Bill Graham, workforce development coordinator at the not-for-profit organization.
“We’ve approached them a number of times to see if they’d be interested in our workforce development program,” Graham said. The Candy Institute/Food Chicago has been involved in encouraging vitality among the region’s candy and food processing businesses.
Fannie May’s departure is the latest cavity in Chicago’s “Candy Capital of the World” crown.
Marshall Field’s moved its production of Frango mints from downtown Chicago to Pennsylvania five years ago.
Brach’s Confections Inc. closed its Chicago factory permanently on Dec. 31 to move production to Mexico. At one time, the factory employed 3,500.
The buyer of Fannie May likely would relocate to already-existing production facilities, possibly outside the country.
“It looks like they may move production to Canada,” Graham said. However, he said, candy companies can survive and even thrive in the United States, despite higher costs.
The company had been struggling to maintain its regional and national market share as consumer tastes have shifted, Graham said.
“[Fannie May] needed to diversify. The last 20 years, there’s been no change in packaging or in their stores,” Graham said. “The older generation recognizes them, but younger people may not.”
Archibald emerged from Chapter 11 bankruptcy in October 2002, but has struggled since, the company said.
Fannie May has been a staple of the candy industry for the past 80 years, selling chocolates, hard candy and boxed gift assortments through its Fannie May and Fannie Farmer stores and selected retail shops.