Yankee Candle: Lease dispute does not affect us

  • Yankee Candle Co. Corporate Headquarters Distribution Center on Route 5&10 in South Deerfield. February 21, 2017. Recorder Staff/Paul Franz

  • Yankee Candle Co. Corporate Headquarters Office Complex on Route 5&10 in South Deerfield. February 21, 2017. Recorder Staff/Paul Franz

  • Yankee Candle Co. Corporate Headquarters on Route 5&10 in South Deerfield. February 21, 2017. Recorder Staff/Paul Franz

Recorder Staff
Published: 2/22/2017 11:30:31 PM

SOUTH DEERFIELD — A Yankee Candle Co. official says the candle-making giant is not directly involved in a dispute affecting its leased office building and warehouse in Deerfield.

A March 21 foreclosure auction has been scheduled for the company’s leased office and warehouse buildings on Yankee Candle Way.

The candle company, which has its flagship store on Routes 5 and 10 in South Deerfield and its factory in Whately, leases the 81,138-square-foot office building and the 256,340-square-foot warehouse from Deerfield Yankee Candle Acquisition LLC, a Delaware limited liability company.

The mortgage for those buildings has been held since Jan. 5 by Yankee Candle Way LLC, with an address listed in the care of H.I.G. Capital LLC of Miami. Prior to that, it was held by 16 Yankee Candle Way Holdings LLC of Maryland.

“This foreclosure auction is the result of a dispute between the property owner and its lender,” Yankee Candle Co. Chief Operating Officer James Perley said in a written statement. “It does not involve Yankee Candle. We fully expect to continue to operate in these buildings and have long-term leases on both properties. It continues to be business as usual for Yankee Candle in South Deerfield.”

A representative for Newell Brands of Hoboken, N.J., the parent corporation of the home-grown candle company since April 2016, declined to elaborate on the terms of its lease for the property.

An attorney for the current mortgage holder has declined comment on whether the owner of the 42-acre property is in default of payments or whether a default would have predated last month’s change in lenders.

Yankee Candle Company Inc. in recent years has been Franklin County’s largest employer with about 1,500 employees, more than 500 company-owned retail stores and approximately 35,000 store locations overall.

The company built a new manufacturing plant near Havran, in the Czech Republic that opened last December — its first production and distribution facility outside the United States, with plans to hire 300 to 400 employees within the first three years.

Company CEO Michael Polk, according to a spokesperson, told investors in an earnings call on Feb. 6, “Our focus is going to be about deploying this brand (Yankee Candle) in every retailer we can in the U.S. and then extending the footprint to Canada and then extending the footprint with our Czech factory up and running into continental Europe more broadly and building a multi-brand strategy.”




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