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Why Did Necco Shut Down?

Why Did Necco Shut Down?

Necco, the oldest continuously operating candy company in the United States, abruptly shut down its factory in Revere, Massachusetts, in July 2018. The news of the closure shocked more than 200 workers who were left without jobs. The closure also left fans of Necco’s iconic candies, such as Sweethearts, Clark Bars, and Necco Wafers, wondering what happened to their favorite treats.

The reasons behind the sudden shutdown remain unclear, but reports suggest that the company was facing financial troubles. Necco was acquired by Round Hill Investments LLC, a private equity firm owned by billionaire C. Dean Metropoulos, in May 2018. The company’s former CEO, Michael McGee, had warned that the candy company was at risk of shutting down if a buyer was not found. Despite the acquisition, the company’s financial situation did not improve, and it was forced to close its doors just two months later.

Necco: A Brief History

Necco, also known as the New England Confectionery Company, was an American candy manufacturer that was founded in 1901 through the merger of several small confectionery companies located in the Greater Boston area. The company’s ancestral companies date back to the 1840s, making Necco one of the oldest candy companies in the United States.

Necco was known for producing a variety of iconic candy brands, including Necco Wafers, Sweethearts, and Mary Janes. The company’s Necco Wafers, which were invented in 1847, had the longest production run of any candy in America until the company’s Massachusetts factory was closed in July 2018.

Over the years, Necco faced numerous challenges, including financial difficulties and changes in consumer preferences. In 2018, the company was sold for $17.33 million to Round Hill Investments LLC, run by billionaire C. Dean Metropolous. However, despite the new ownership, Necco was unable to overcome its financial struggles and was forced to shut down its factory in Revere, Massachusetts, in July 2018.

Despite its closure, Necco remains a beloved part of American candy history, and its iconic brands continue to hold a special place in the hearts of candy lovers everywhere.

The Decline of Necco

Necco was once a beloved candy company that had been around for over a century. However, due to several factors, the company began to decline in the years leading up to its closure.

First, Necco was slow to adapt to changing consumer tastes. While their classic candies like Necco Wafers and Mary Janes had been popular for decades, younger generations were not as interested in these types of sweets. As a result, Necco struggled to attract new customers and maintain its existing fanbase.

Second, Necco faced financial troubles. The company had been sold multiple times over the years, and each sale left it with more debt. By the time it was sold to Round Hill Investments in 2018, Necco was struggling to stay afloat.

Finally, Necco faced production issues. The company’s factory in Revere, Massachusetts was old and outdated, making it difficult to produce candy efficiently. In addition, the factory was shut down abruptly in 2018 due to sanitation problems, which left Necco without a place to produce its candies.

All of these factors contributed to the decline of Necco and ultimately led to its closure. While the company had a long and storied history, it was unable to keep up with the changing times and the demands of the modern candy market.

Reasons Behind the Shutdown

Economic Factors

Necco faced several economic challenges before its sudden shutdown in 2018. The company had been struggling with debt and was unable to secure additional funding. It was also hit by a sharp increase in sugar prices, which further added to its financial woes. The company’s financial problems were compounded by a decline in sales, which made it difficult for Necco to stay afloat.

Changes in Consumer Preferences

Another factor that contributed to Necco’s shutdown was a shift in consumer preferences. The company’s products, which included Sweethearts and NECCO wafers, were popular among older generations but failed to resonate with younger consumers. As a result, Necco struggled to attract new customers and maintain its market share.

Operational Challenges

Necco also faced operational challenges that made it difficult for the company to remain competitive. The company’s manufacturing facilities were outdated and inefficient, which led to higher production costs and lower profit margins. Additionally, Necco was unable to keep up with changing industry trends, such as the growing demand for organic and all-natural products.

In summary, Necco’s shutdown was caused by a combination of economic, consumer, and operational factors. The company’s inability to secure funding, declining sales, and outdated manufacturing facilities all contributed to its downfall.

The Aftermath of the Shutdown

The sudden shutdown of the New England Confectionery Company (Necco) in July 2018 left more than 200 workers without jobs. The closure of the candy factory that made iconic candies such as Necco Wafers and Sweethearts was a blow to the community, which had a long history of producing confections.

The shutdown also had a ripple effect on the candy industry. Retailers who sold Necco candies had to find alternative products to meet the demand of their customers. Some companies even saw an opportunity to fill the void left by Necco and started producing their own versions of the classic candies.

The shutdown of Necco was due to a combination of factors, including financial difficulties and the changing tastes of consumers. The company was acquired by Round Hill Investments LLC, owned by billionaire C. Dean Metropolous, in May 2018. However, the investment company was unable to turn the company’s fortunes around and decided to shut down the factory just two months later.

The closure of Necco was a sad end to a company that had been in business for over 170 years. However, the legacy of the company lives on through the memories of those who enjoyed their candies, and the new companies that have emerged to fill the void left by Necco.

Revival Attempts

After the Necco company shut down in 2018, there were several attempts to revive the iconic candy brand. Spangler Candy Company, the makers of Dum Dums lollipops, expressed interest in purchasing the Necco brand and its assets. However, negotiations fell through, and Spangler Candy Company withdrew their offer.

The online candy retailer,, also attempted to purchase the Necco brand. They launched a crowdfunding campaign to raise money for the purchase, but they fell short of their goal.

Another potential buyer was the Round Hill Investments LLC, the company that had previously purchased Necco in 2018. However, they did not express any interest in reviving the brand after the initial shutdown.

Despite these attempts, Necco remains out of production. Fans of the candy may still be able to find it in specialty stores or online, but for the time being, it seems that Necco wafers will remain a nostalgic memory for many.

Legacy of Necco

Necco, also known as the New England Confectionery Company, played a significant role in the history of American candy. The company was created in 1901 as a result of the merger of several small confectionery companies in the Greater Boston area, with ancestral companies dating back to the 1840s.

Over the years, Necco became famous for its iconic candy brands, including Necco Wafers, Sweethearts, Mary Janes, Clark Bars, and Sky Bars. These candies were enjoyed by generations of Americans and became a part of the country’s cultural heritage.

Necco’s legacy also includes its contribution to the war effort during World War II. The company produced specially designed candies that were sent to American soldiers overseas, providing them with a taste of home and a morale boost.

Despite its rich history and cultural significance, Necco faced financial difficulties in the early 2000s. The company struggled to keep up with changing consumer tastes and increased competition from other candy manufacturers.

In 2018, Necco was sold for $17.33 million to Round Hill Investments LLC, a company known for saving troubled brands. However, the new owner was unable to turn the company’s fortunes around, and Necco shut down later that year, leaving a void in the American candy industry.

Necco’s legacy lives on through its iconic brands and the memories of those who enjoyed its candies over the years. While the company may no longer be in operation, its impact on American candy culture will not be forgotten.