# Rocky Mountain Chocolate Factory Weighs Sale or Going-Private Deal

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/35367
Published: 2026-10-20T06:24:34.000Z
Updated: 2026-10-20T06:24:34.000Z
Section: Business

> The board began its review before the company completed a $6.6 million property sale and received a $2 million bank loan on Oct. 16.

Rocky Mountain Chocolate Factory, Inc. is weighing a sale, merger or move to private ownership through a board review begun during a fiscal quarter in which the chocolate maker’s net loss widened.

The board formed a strategic committee with advisers during fiscal 2027’s second quarter, which ended Aug. 31, 2026. The options under review include other business combinations. Third parties expressed interest in connection with the process, but the review may end without a transaction.

Quarterly revenue declined 2.5% to $6.7 million from $6.8 million a year earlier. Gross margin improved to 8% from negative 0.6%, while the net loss grew to $1.3 million from $700,000.

After the quarter ended, the company sold its manufacturing facility in Durango, Colorado, for $6.6 million and leased it back. The Oct. 16 sale allowed Rocky Mountain Chocolate Factory to repay $6.6 million in debt carrying 12% annual interest. The repayment also incurred $300,000 in prepayment penalties and related costs.

The buyer, American Heritage Legacies, LLC, is controlled by the family of the company’s interim CEO. Disinterested board members and the audit committee approved the related-party transaction. Rocky Mountain Chocolate Factory will lease the facility for an initial 10 years, starting at $624,000 in annual rent, with 2% increases each year.

Rocky Mountain Chocolate Factory also received a $2 million working-capital loan from Alpine Bank on Oct. 16. The loan is secured by all the company’s assets, carries interest at the prime rate plus 1% and matures Oct. 16, 2028.