HONOLULU — A financially hurting candy maker known for a memorable slogan is trying to shore up its business by offering a deal to vendors as the company faces difficulties because of the coronavirus pandemic’s economic fallout.
Hawaiian Host Inc. is asking vendors to settle invoices with the 60-year-old producer of chocolate-covered macadamia nuts.
The company, which trademarked the phrase “Hawaii’s gift to the world,” informed vendors it would settle past due invoices at a discount of 75 cents per $1 of debt.
The recovered funds could satisfy the company’s unpaid accounts and secure new investment capital, the company said.
In a letter last month explaining the offer, Hawaiian Host CEO Ed Schultz said bankruptcy was another possibility for the company, which has about 460 employees.
Tourism accounts for 65% of Hawaiian Host’s business and the company said it cannot pay vendors on time because of state health restrictions affecting the tourism industry.
The company anticipates negative cash flow until the state achieves at least 10,000 tourist arrivals daily, Schultz said.
Hawaii Tourism Authority figures indicate there were about 2,000 daily trans-Pacific air passenger arrivals during the previous week.
Hawaiian Host received a $5 million to $10 million forgivable federal Paycheck Protection Program loan in April and a $30 million sale and leaseback of its Honolulu production facility in June.
The company acquired Hilo-based Mauna Loa Macadamia Nut Corp. five years ago.