Naracoorte’s closed Morris Bakery – which shut after embezzlement allegations – sold to local buyer

After a shock closure in February earlier this year due to alleged embezzlement by a former employee, Naracoorte’s beloved Morris Bakery has been sold.

Naracoorte's iconic Morris and Sons Bakery has found a buyer after it was suddenly closed earlier this year. Picture: Jessica Dempster.

A beloved country bakery on Naracoorte’s main street has been sold after it abruptly closed in February over allegations of a $350,000 embezzlement.

Malseeds Real Estate in Mount Gambier were appointed by liquidator Tarquin Koch to sell the building, the bakery’s lease, plant and other equipment.

These assets were set to be sold at auction but Mr Koch said “the property and the plant and equipment are currently under contract with a settlement scheduled for July”.

Mr Koch said the new proprietors were not yet ready to reveal their plans for the business but Malseeds told The Naracoorte News the business will serve food and aims to start operation in a couple of months time.

It’s a promising sign for the town that once served as a regional hub for surrounding communities but in recent years has been hit by business closures.

A new phone repair shop has recently opened in Smith St as well as a new cafe/coffee shop across from the town’s tourist information centre.

First established in 1946, Morris Bakery was a staple family-owned-and-operated bakery and cafe for Naracoorte and the surrounding regions until it suddenly closed on February 5.

Naracoorte's famous Morris and Sons Bakery. More information has come to light following the abrupt closure of Naracoorte's famous Morris and Sons Bakery. PICTURE: Facebook.

The business had been struggling for several years, with many locals sharing on social media the quality of its produce wasn’t what it once was.

A new bakery operated by the local Tender Cuts butcher opened up on the adjacent, busier, Ormerod St.

Morris Bakery’s closure came as a shock without warning with no official announcement on its social media or via signage on the shop’s storefront.

Instead, the lights were simply off and the automatic door no longer opened.

Less than a week after the bakery’s sudden closure, it was revealed by the business’s liquidator that embezzlement allegations were at the core of its demise.

Mr Koch said “the director of the company alleges a former employee embezzled circa $300k from the business, which he attributes to the businesses demise.”

SA Police confirmed a report concerning such activity had been made.

Mr Koch said other former employees were owed “substantial” entitlements and that police were investigating the alleged misuse of a company credit card, with personal expenses incurred without permission.

No charges have been laid, and the owner was not accused of any wrongdoing.

He said debts owed were currently about $350,000 – and the company had not secured employee dishonesty insurance.