A bitter tasting defeat for Dunedin's 'Own The Factory' campaign.
Time constraints and logistical issues have stalled the people-powered bid to keep Pineapple Lumps in Dunedin.
Jim O'Malley has confirmed Dunedin Manufacturing Holdings is pulling out over issues with equipment and logistics. He said he withdrew after speaking with Mondelez.
"They are saying that they still want to make the call on the third party manufacturer basically in August of this year and didn't feel that we would be in a position for them to make a decision in our favour when it compares to the other two."
He said said equipment issues also stalled the bid.
"Mondelez then raised the issue that even if we got it then would we be able to move it to the other building and get it up and running by August of next year."
However, Mr O'Malley said there is enough support to create a public-owned chocolate factory, and they will be working on a business plan over the next four months.
"This is a case of reassessing what our options are and then going forward again. It is still our commitment to save the jobs and effectively save the manufacturing capacity in the city."
The campaign raised a third of its $20 million target within the two week window.
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