Good News For Lollipop Fanciers
- May 11th, 2007
- Posted by EUEditor
Chupa Chups the leading lollipop company has been permitted access to a large loan to keep it in business, and excused from culpability over some earlier help a step outside the law.Even world favourites can go through a bad patch in business, and in Europe the competition regulator is always on hand to make sure they manage their own recovery.
The European Commission has announced (10.5.07) that the Chupa Chups parent company, in Spain, will be allowed to borrow EU 35-million (A$ 56.95-million; dcerates.com, 10.5.07) from a state authority – because the terms were in line with what a market economy investor would have accepted.
It did say that a state subsidy of EU 900 000 (A$ 1.465-million) offered when the firm was in difficulties, in 2003, would have been illegal under European law; but only EU 100 000 ($A 162.750) of it had been paid, and that would have to be paid back.
The company which attributes 70% of its sales to lollipops, and is the world’s main supplier of these lollies on a stick, was bought from its original family owners by the Italian-Dutch company Perfetti Van Melle, in 2006.
The supply of lollipops should continue.