- 4 -
corporation. Washington Chocolate was in the business of
providing bulk food products which would be placed in and sold
from bins located in supermarkets and other retail
establishments. Washington Chocolate manufactured and
distributed various snack foods and confectionary goods,
including trail mixes, coated nuts, dried fruits, and chocolate,
yogurt, and carob products.
Before petitioners acquired Washington Chocolate, the
company was close to bankruptcy. Before purchasing Washington
Chocolate, petitioner created a new business plan for the company
and renegotiated credit and loan terms with the company's major
creditors.
At the time petitioners purchased Washington Chocolate, the
company had only one significant customer and a downward annual
sales trend. Petitioner increased the value of Washington
Chocolate by creating and patenting a new product dispensing
system which distinguished Washington Chocolate from its
competitors. Under petitioners' ownership and management,
Washington Chocolate's customer base expanded and annual sales
increased substantially.
A primary competitor of Washington Chocolate was Harmony
Foods, Inc. (Harmony Foods), whose president was Robert Lynch
(Lynch). On May 26, 1989, Washington Chocolate entered into an
asset purchase agreement (purchase agreement) with Harmony Foods,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011