Grand Junction-based Enstrom Candies Inc. swooped in Friday to make a winning bid for Stephany’s Chocolates, snapping up the assets of the bankrupt chocolatier for $1.5 million.
First National Bank of Colorado – which controlled Stephany’s key assets, such as its trade name, candymaking equipment and inventory – held the auction in Boulder.
The bank on Thursday said it had negotiated a deal with Russell Stover Candies, based in Kansas City, Mo. But that was only if no higher bidder emerged.
Enstrom, well-known for its handcrafted almond toffee, has not decided which of Stephany’s products it will continue, said Doug Simons, president of Enstrom.
“They have a couple things that interest us that might fit into our future growth plans,” Simons said.
Stephany’s popular products included the Denver Mint and Colorado Almond Toffee.
Enstrom did not acquire the retail leases of Stephany’s five shuttered metro locations. Enstrom operates four of its own retail locations: in Grand Junction, Denver, Lakewood and Fruita.
Ben Doud, owner of Stephany’s Arvada factory and headquarters, had bid $1.45 million for the assets, according to Ted Sikora, the bank’s legal counsel.
Scott Ward, co-president of Russell Stover, said his company did not make a bid Friday but that it had previously made an offer for some of Stephany’s assets. Ward said he was not surprised that Enstrom swooped in with an offer.
“It would be silly not to look at (Stephany’s),” said Ward, speaking by phone from Kansas City, Mo. “They have very good recipes, and they have been a fine company.”
Simons said the Enstrom family had a long-standing friendship with John and Gus Poulos, who founded Stephany’s in 1963 and later sold it. It has changed hands since then.
Simons said Enstrom previously considered purchasing Stephany’s when it was for sale in 2004.
Enstrom opted against it at the time, partly because Stephany’s leased its plant rather than owned it, Simons said.
“If I was going to buy some some real estate, as well, I might have done it,” he said.
Stephany’s had been operated by Arvada-based Columbine Candy Co. The company shut down abruptly in April after the death of co-owner and president Hal Strottman.
Enstrom was founded in 1960 by ice-cream shop owner Chet Enstrom and remains a family-owned company.
Staff writer Will Shanley can be reached at 303-820-1260 or wshanley@denverpost.com.
