A WELL-KNOWN York business, which went into administration, has been ‘saved’ under new ownership.

In November, administrators were appointed to York Cocoa House Ltd, which is based in Castlegate, in York City Centre and trades as York Cocoa Works.

The business, founded by Sophie Jewett in 2011, makes and sells chocolate, has a chocolate-focussed cafe and also runs chocolate making workshops. Orginally in Blake Street it moved to moved to Castlegate in 2018.

In recent years, it has suffered financial difficulties partly due to the pandemic and its related lockdowns, troubles compounded due to rising costs for ingredients and a quadrupling of its energy bill.

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A vital piece of chocolate making equipment also failed earlier this year and it could not be fixed for months.

Sophie said: “Unfortunately the business was not eligible for many of the grants through Covid due to our rateable value, without the bounce back loans, and an ongoing wrangle with our insurance company refusing to pay out.

“This was then followed by changing operating challenges and then eventually the pressure with energy prices we had endeavoured to find an effective model to move forward with the original entity and model but this was no longer viable nor in some ways suitable.”

The company entered a Corporate Voluntary Arrangement (CVA) in 2020, an agreement made to pay creditors, but that ended in November due to obligations to HMRC not being met concerning 'filing requirements'.

A Supervisors Final Report, dated November 22, noted there were no secured or preferred creditors, but unsecured creditor claims totalling £644,532.

Sophie told the Press: “The majority of the creditor claims are from my fellow directors and myself who had put further funds into the business.”

“The full team, services and trading have all transferred to a new entity which will continue to operate our York Cocoa Works manufacturing facility.”

The new entity owning the business is YCW Trading, also of Castlegate. Its sole director is 57-year-old Bermudian, finance director Mark Turner, a UK resident.

Sophie will continue to run the facility and operations.

She said: “Mark is a long term customer and supporter who has given mentoring advice since the early days when we started out as a cafe. I am working with him to develop a more effective trading model suitable for moving the business forward given our existing structure and the emerging trading environment.

“Our team have had a positive Christmas and with many positive achievements this last year to re-position the business we have endeavoured to find a way forward that allows chocolate making, education and sustainable cocoa sourcing to continue.

“I’m immensely appreciative of the energy, knowledge and support shared by so many in the city to bring chocolate making back to York. We look forward to continuing to build on these achievements and investments so far.”

Administrator Frazer Ulrick confirmed the business and assets of York Cocoa House were sold to YCW Trading via a prepack Administration on November 15.

This is a process that effectively allows businesses to continue trading seamlessly as before but can cause controversy because of its effect on creditors owed money.

Frazer said: “The Administrator’s team at Auker Rhodes Accounting were assisted in actively marketing the business by BPI Asset Advisory prior to the Administration, which resulted in 13 expressions of interest.

“All employees have been retained by the new business, which is now well positioned for the Christmas trading period and to fulfil the chocolate making experiences that have already been booked and paid for.

“Auker Rhodes Accounting was advised by Hethertons solicitors and YCW Trading was represented by Andrew Jackson solicitors.”