The Colonial Candle Studio, a company owned by the owner of the former Colonial candle factory in Brooklyn, New York, has fired $2 million of its employees in 2017.
The layoffs came a week after the company announced that its former chairman and CEO, James C. Stroud, had been convicted of fraud.
The company’s last full year of revenue was $7.5 million, but the board decided to cut back significantly and instead focused on producing candle scones and other products.
“We made a decision that was the right thing to do, and we felt we needed to do it,” CEO Mark McBride told the Associated Press at the time.
“The people who were there before us, they were great people.
We feel that it’s time to go.”
Colonial Candle has already closed several locations and sold off its factory in Queens, New Jersey, where it once produced the Colonial Candle line of candles.
It now plans to focus exclusively on producing candles and scones for the U.S. market.
The Colonial candle business, which was started by Stroud in the 1970s, was once a lucrative source of revenue for Colonial and other candles manufacturers.
However, as the company began to lose revenue, it was forced to shut down production in the 1990s and closed its remaining factory in New York.
The factory was sold in 2000 to an investment firm.
The current Colonial Candle headquarters in Queens is a refurbished former Colonial Candle factory, which the company closed in 2013.
The firm’s former chief executive, John D. Stouffer, was convicted of felony securities fraud in 2010 and sentenced to six years in prison.
The former president of the company, James L. Smith, was sentenced to seven years in jail in 2016 and sentenced in March 2018 to 10 years in state prison.
In January, McBride announced the company had reached a deal to sell the business.
The deal will be worth approximately $6 million.
The new owners of Colonial Candle will be able to continue to produce candles for the foreseeable future.
Colonial Candle was founded in 1846 and is now one of the largest manufacturers of candles in the United States.
The Company had $13 million in revenue in 2017 and plans to invest approximately $8 million in new factories and expand production.
“With this transaction, Colonial Candle is now in the right place in time to create new jobs and invest in the future of our business,” McBride said in a statement.
“Colonial Candle’s new owners are committed to continuing to invest in our business and our people.
This transaction will allow us to continue our mission to create candles that will last for generations to come.”