More than 20 people have lost their jobs after Metford Confectionery management announced the company would permanently close its doors.
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The Mercury understands that the full-time staff members were called into a meeting at lunch time on Friday where they were told that the lolly factory and store would close down, effective immediately.
Narelle Hackney said she had run the lolly shop at the Metford Road site and had worked there for about 18 months.
She said an announcement that receivers would be arriving at the premises today was a shock.
“The casuals [staff] were sent home and they [management] told us that they had run out of money and the receivers were coming in on Monday,” Ms Hackney said.
“We’re devastated. People have mortgages, one person is pregnant, one person has just bought a new car.
“There was anger, disappointment, tears.”
Ms Hackney said she received her final pay cheque but was allegedly told there was no guarantee that she would receive the money.
She said the closure affected 10 full-time staff members and between 10 and 15 casuals.
“Things were looking good,” she said.
“I know it had been struggling in the past but they hired a new sale rep in November last year who was out selling the product and we had a new contract with Woolworths to stock products as of March.”
New Zealand-based Rainbow Confectionery took over Metford Confectionery in April, 2013.
The Prydes Confectionery Company had closed its doors at the site the previous August, so the move was seen as positive for employment in the Maitland area at the time.
Prydes had operated in Maitland since the 1930s.
It went into receivership briefly in 2008 but was reopened by the Sanchez Group Australia a year later.
In a letter to staff, general manager Brett Baillie wrote that it had been difficult to make the required sales to support manufacturing at the Metford site.
“As you will appreciate this has not been an easy decision for the directors of this company and it will be a stressful time for all affected employees,” he wrote.
The Mercury contacted management of Rainbow Confectionery, their Australian sales manager and the Liquor Hospitality Miscellaneous Union for further comment, but was unable to reach them.