The administrator of candy retailer Darrell Lea said on Thursday that it will shutter 32 out of 66 outlets which are losing money. The move would cause about 200 store workers to lose their jobs.

Besides being unprofitable outlets, the 32 stores to be shuttered lack interested buyer, said Mark Robinson of PPB Advisory, the corporate restructuring firm of Darrell Lea.

With the closure, Darrell Lea would be reduced to just 34 outlets. The closure of the 32 would result in 167 casual, 16 part-time and 15 full-time employees being declared redundant.

Although it is a bitter pill for the candy store workers to swallow, Mr Robinson said the aim of the closure is to make the remaining 34 open outlets sweeter to future buyers and protect the interest of the remaining 480 workers.

However, he added that the same bitter bill could be given to the remaining employees if the open stores would not attract buyers and lead to more closures. Although there are eight potential buyers, with two considering purchasing the entire chain including Darrell Lea's factory in Kogarah, none of them indicated they just want to buy the brand and bring the production offshore, the administrator said.

The heirs of Harry Lea, the founder of the 85-year-old confectionary, refused to continue the losing operations leading to the appointment of Mr Robinson as administrator.

Besides the company-owned stores in Australia, it has franchised outlets in Australia, New Zealand and the U.S. which would continue running although three outlets have shuttered due to lease expiration.

The 32 outlets to be closed are located in Sydney (14), Melbourne (5), Queensland (5), Western Australia (4), ACT (3) and South Australia (1).

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