Distressed London chocolate business seeking a buyer

A well-known London luxury chocolatier, Rococo Chocolates, is seeking a buyer after filing a notice of intention to appoint administrators, putting its two remaining retail sites and manufacturing operation in play just weeks before Easter trading peaks.

The business, which trades from boutiques in Marylebone’s Moxon Street and Chelsea’s King’s Road as well as supplying online customers, has instructed Harrison Drury & Co to explore options after prolonged losses and rising costs left the company unable to trade comfortably through another seasonal cycle.

Accounts for the year to 31 December 2024 show turnover of £1.64 million, down around 13 per cent from £1.89 million in 2023, underlining the pressure on premium discretionary spending in the capital. Despite the sales decline, Rococo improved its gross margin: cost of sales fell to £802,441 from £1.23 million, lifting gross profit from £660,106 to £838,536.

However, this was more than offset by continued overheads. Administrative expenses of £1.18 million in 2024 (2023: £1.28 million) left the business with an operating loss of £168,270, following a £431,103 loss the previous year. No interest or tax charges were recorded, meaning the operating loss translated directly into a bottom-line loss in both years.

In two years, the company has accumulated just under £600,000 of reported losses on a combined turnover of more than £3.5 million, indicating a structurally weak cost base rather than a one-off shock.

Rococo’s current difficulties follow a long period of ownership and structural change. The brand, established on London’s King’s Road in 1983 by chocolatier Chantal Coady OBE, built an international reputation for design-led packaging, imaginative flavours and high-end gifting, opening multiple sites across Chelsea, Belgravia, Marylebone, Seven Dials and Notting Hill. The original operating company, Rococo Chocolates Ltd, entered administration in 2019 with five London stores before being sold in a pre-pack deal to a vehicle backed by Gruppo Illy, the Italian coffee group.

Subsequent entities, including Rococo Chocolates London Limited, also went through administration and dissolution processes, underscoring how challenging it has been to sustain the model under successive ownership structures. Rococo Chocolatier Ltd, incorporated in 2022 and now in difficulty, is the latest corporate vehicle behind the brand.

The company continues to present itself as a London luxury chocolatier with a strong ethical focus, emphasising ethically sourced cocoa, payment of the Living Wage and small batch production in its own London kitchen. Its Marylebone boutique, promoted as a destination for hot chocolate, ice cream and build your own selection boxes, and its King’s Road, Chelsea shop remain the main physical touchpoints for the brand. Online, Rococo has paused orders and is telling customers it hopes to “return shortly”, a standard holding message while a notice of intention process is in place.

The current filing gives the company a short moratorium period in which creditors cannot enforce against it, allowing advisers to market the business and negotiate with interested parties. Given Rococo’s longstanding brand recognition, prime London locations and established wholesale and online channels, a pre-pack sale to a larger food or luxury group, or to an investor already exposed to premium chocolate and coffee, appears a likely outcome if acceptable terms can be reached.

However, recent financials make clear that any buyer will need to address fixed overheads and store economics as much as brand and product, with two consecutive years of operating losses despite solid gross margins.

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