Candy Maker Files for Bankruptcy
PITTSBURGH (AP) _ The maker of the Clark Bar, which found success with a 5-cent-sized candy bar sent to American troops during World War I, filed for Chapter 11 bankruptcy protection Monday after years of financial turmoil.
``Clark has had many problems in the past several years,″ Clark Bar America Inc. spokeswoman Diana Scally said. ``Unfortunately, it’s just gotten to the point where we need protection from creditors.″
Company officials have worked for the past 18 months on a restructuring plan but ran out of time and had no option but to seek bankruptcy protection in federal court, Scally said. The candy bar ran into trouble once before when its previous maker filed for bankruptcy protection.
The filing will enable Clark to keep operating under a court’s supervision while it develops a plan for returning to solvency, to facilitate a restructuring or a sale of all or parts of the retail organization.
It was the best option to keep some 100 employees working to produce the signature Clark Bar, a chocolate-coated peanut butter crunch bar, and other variations, Scally said.
Officials are discussing bringing in new investors or selling the company; no immediate layoffs are expected, Scally said.