Chocolate maker signs $6.6M sale-leaseback deal for warehouse site

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Dive Brief:

• Rocky Mountain Chocolate Factory signed a $6.6 million sale-leaseback deal for its Durango, Colorado, production and warehouse facility, according to an Oct. 6 news release.
• American Heritage Legacies — controlled by the family of Rocky Mountain Chocolate Factory's interim CEO Allen Harper — acquired the property, which also serves as the chocolate maker and franchisor’s corporate headquarters. Harper recused himself from the review process, and the purchase price was supported by an independent appraisal, per the release.
• The proceeds will enable Rocky Mountain Chocolate Factory to repay $6.6 million worth of outstanding promissory notes, per a securities filing. Rocky Mountain Chocolate Factory will lease the facility for an initial term of 10 years, with an option to renew for an additional 10 years. Rent will be $624,000 in the first year and increase 2% annually.

Dive Insight:

The sale-leaseback of Rocky Mountain Chocolate Factory's production and warehouse site adds to the company's efforts to improve its financial footing, including several supply chain-focused adjustments. Over the past few years, the company has rolled out freight pricing tweaks to improve inventory freshness, outsourced its packing operations and cut less-popular SKUs.

“We are focused on making thoughtful financial decisions that strengthen Rocky Mountain Chocolate Factory and create a more sustainable foundation for the business,” Mel Keating, chairman of Rocky Mountain Chocolate Factory's board of directors, said in the release. “This transaction allows us to significantly reduce our existing debt while securing our continued operations at the Durango facility under a long-term lease.”

Rocky Mountain Chocolate Factory isn't alone in its sale-leaseback transaction. From the start of 2025 through Q1 2026, warehouse and logistics sale-leaseback volume has totaled about $3.5 billion across nearly 300 properties, according to a July media advisory from SLB Capital Advisors. Occupiers are using the transactions to unlock capital while keeping long-term control of important facilities, per the real estate advisory firm.

“Warehouse and logistics operators are increasingly turning to sale leasebacks to monetize mission-critical distribution facilities and fund growth, automation, and supply-chain investments while retaining full operational control of their real estate,” Scott Merkle, managing partner at SLB Capital Advisors, said in the advisory.

Rocky Mountain Chocolate Factory posted a $1.2 million net loss for the quarter that ended May 31. Revenue declined year over year due to lower royalty and marketing fees, while expenses increased YoY due in part to higher costs tied to the rollout of a third-party delivery platform.