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Judge Rules Sugarfina Can Take Back Candy

Submitted by jhartgen@abi.org on

A bankruptcy judge has ordered two candy manufacturers to turn over candy and packaging they had been holding as collateral after high-end candy-shop chain Sugarfina Inc. failed to pay them, WSJ Pro Bankruptcy reported. Bankruptcy Judge Mary F. Walrath ordered the two family-owned manufacturers to hand over about 630,000 of Sugarfina’s Candy Cubes, clear, square containers usually filed with candy, and Champagne Bears, alcohol-infused gummy bears, being held in a warehouse on Long Island, N.Y. The judge told candy makers GLJ Inc. and MJC Confections LLC to keep the candy refrigerated to ensure it doesn’t melt. The judge said Sugarfina must pay the two manufacturers because preserving the candy costs them money, Judge Walrath said. Last week, Sugarfina sued the candy manufacturers to force them to turn over more than $2.8 million worth of the retailer’s sweets and other property in a warehouse in Bethpage, N.Y. The candy makers store Sugarfina’s raw candy, package its merchandise and assemble its products.