London chocolatier falls into chocolate administration after 40 years
A long-established London chocolatier has entered chocolate administration, marking a major shift for a business that supplied some of the capital’s most prestigious stores. Administrators were appointed on February 6, 2026 (ET), with the company’s status confirmed publicly on February 17, 2026 (ET).
What happened and who is involved
The confectionery maker, founded in 1986 by patissiers Rolf Kern and Gabi Kohler, built a reputation for handmade chocolates and petit fours supplied to leading London retailers and luxury food halls. The business was acquired by a larger chocolate group in 2006 and later came under the same umbrella as other heritage chocolate brands.
Administrators were installed earlier in February 2026 (ET). The firm last week closed its iconic Piccadilly shop in central London after mounting financial pressure. The collapse coincides with the larger group’s descent into administration and has resulted in a pre-pack administration arrangement that will transfer the brand to another specialist chocolatier owned by a private investment manager. The deal was agreed before administrators were formally appointed and is expected to leave one of the group's historic brands operating as an online-only label.
Industry pressures that helped push the business over the line
Executives and market commentators point to a mix of structural and market forces behind the fall. Global cocoa prices surged to record highs in 2024 and have remained elevated, squeezing margins for makers that rely on premium cocoa varieties. Cocoa harvests in key producing nations were hit in recent seasons by disease and extreme weather events such as floods and droughts, reducing supply and pushing input costs higher.
At the same time, retail footfall and discretionary spending patterns have shifted, and the chocolatier struggled with weaker sales at its central London outlet. The firm’s strategic push into premium cocoa strains such as Criollo—intended to differentiate products in a crowded market—left it exposed to competition from lower-cost producers and tighter consumer demand for high-end confectionery.
The Piccadilly storefront, long regarded as one of the few remaining London shops to produce chocolates on-site and a cultural touchstone mentioned in mid-20th-century literature, closed its doors ahead of the administration announcement.
What the pre-pack deal means and next steps
The pre-pack administration arrangement will see the operating brand taken over by an established chocolate maker backed by private capital. That buyer plans to continue the brand in a reduced form while integrating production into its existing operations. As part of the transaction, the larger group’s historic flagship is expected to continue only as an online brand, with the physical retail presence scaled back or eliminated.
Employees and suppliers face uncertainty in the coming days as administrators assess the balance sheet and finalise redundancies or business transfers. Administrators will also examine potential buyers for remaining assets and short- and medium-term trading options to preserve value.
This development underlines the pressures on artisanal and heritage food manufacturers in the current commodity and retail environment. The combination of rising raw material costs, climate-related disruptions to cocoa supply and changing consumer habits has forced a number of longstanding names in the chocolate sector to re-evaluate how they produce, market and sell premium confectionery.
Further updates are expected as administrators publish formal notices and the acquiring chocolatier outlines its plans for the brand and any retained workforce.
