Business turns sour for chocolate chain
ESCALATING costs and tighter retail trade have been blamed for the financial difficulties of the Max Brenner Chocolate Shop chain including an outlet in Townsville.
The news has dismayed local families and chocolate lovers who are praying the administrators and staff can find a way to continue the business.
Townsville resident Daniel Rojo said their family were regular customers of the Central Village store.
“It’s something the kids will miss if it goes. I hope they can find a way forward,” Mr Rojo said. “I think Townsville needs outlets like Max Brenner.”
McGrathNicol have been appointed voluntary administrators of the company.
Max Brenner Australia operates 37 company- owned stores across Australia and employs about 600 staff.
A spokesman for McGrathNicol said the directors of MB Australia Pty Ltd resolved to appoint administrators on September 30 due to escalating costs and tighter retail trade.
All the stores will stay open while administrators complete an urgent review.
“We are assessing the prospects of completing a going concern sale … or a recapitalisation through the voluntary administration process,” the spokesman said.
Staff say the appointment has been a shock but not totally unexpected.
They have been told it could take another four weeks before they receive further advice about their future.
Business analysts have told media the novelty of Max Brenner, which opened in Australia in the 1990s, has faded and the “decadent chocolate” market is declining.
But in Townsville, the chocolate hit seems as popular as ever, although the market is crowded with options in which locally operated stores such as Oliver Brown and Juliettes dominate.
Oliver Brown owner Maddy Smith said they served a lot of chocolate but had the advantage of diversity of offering to appeal to a wider audience.
“I hope they pull through,” Ms Smith said. “Chocolate makes the world go around.”
Townsville business consultant Michael Kopittke said franchise systems were struggling and big international brands had tended to face difficulties adapting to Australian market conditions.
But he said brands such as Krispy Kreme and Darrell Lea Australia had survived the administration process and come back under new ownership.
Mr Kopittke said consumers were moving away from franchise operations to outlets that were more individual or locally owned operations.
“We have great individually operated coffee shops that are doing incredibly well,” Mr Kopittke said.