Rocky Mountain Chocolate Factory Signs $6.6M Sale-Leaseback for Durango Facility

Rocky Mountain Chocolate Factory signed a $6.6 million sale-leaseback deal for its Durango, Colorado, production and warehouse facility, according to an Oct. 6 news release. American Heritage Legacies — controlled by the family of interim CEO Allen Harper — acquired the property, which also serves as the company's headquarters. Harper recused himself from the review process, and the purchase price was supported by an independent appraisal. Proceeds will repay $6.6 million in outstanding promissory notes, per a securities filing. The company will lease the facility for an initial 10-year term with an option to renew for another 10 years; rent starts at $624,000 in year one and rises 2% annually. The transaction adds to the chocolate maker's efforts to improve its financial footing. Rocky Mountain Chocolate Factory posted a $1.2 million net loss for the quarter ended May 31, with revenue declining year over year on lower royalty and marketing fees.