Former bankrupt Eddy Groves link to Youfoodz shareholder in court

A company linked to former bankrupt childcare tycoon Eddy Groves is suing Brisbane meal-delivery success story Youfoodz claiming it owns a slice of the fast-growing food delivery business.

Eddy Groves with Viryan Collins-Rubie. Picture: Annette Dew

A company linked to former bankrupt childcare tycoon Eddy Groves is suing Brisbane meal-delivery success story Youfoodz claiming it owns a slice of the fast-growing food delivery business.

Mr Groves, the ex-CEO of Brisbane-based stockmarket darling ABC Learning which collapsed a decade ago, is alleged to have acted as a go-between and spokesman in talks on behalf of My Life Pty Ltd, which claims to be a Youfoodz shareholder, and Youfoodz CEO Lance Giles, according to documents filed in the Supreme Court in Brisbane.

YouFoodz is a Queensland-based ready-to-eat meal company which recently launched a meal kit offering.

My Life has sued Youfoodz claiming it is entitled to a 12 per cent stake in the company claiming its share was “compensation for” its lost investment in Youfoodz predecessor, Gold coast-based My Fit Fridge, which collapsed with debts of $1 million in 2012.

Youfoodz refutes this, arguing My Life “never consented to be a member of Youfoodz”, court documents state.

On several occasions in November 2013 Mr Giles emailed Mr Groves asking him to get in touch with the then-sole director of My Life Pty Ltd, Brendan Power, 50, from Ashgrove, a director of Brisbane accountancy firm Harris Black for 20 years, to get him to sign share transfer documents, court documents state.

Harris Black are former advisers to Mr Groves’ failed childcare giant ABC Learning.

Former Harris Black partner and ABC’s former chief financial officer James Black, received a wholly suspended 18 month jail sentence for providing $46 million worth of misleading information to ABC’s auditors in 2015.

My Life claims its’ stake was wrongly transferred to Youfoodz director Arthur Giles — father of Youfoodz CEO Lance Giles - without their permission or knowledge in 2013.

Youfoodz is relying on emails from Mr Groves stating “neither” his wife Viryan Collins-Rubie “or My Life Pty Ltd want to be part of the new venture” in defending the claim.

But My Life argues Youfoodz should not have relied on emails from Mr Groves, and cannot rely on them now to show My Life agreed to transfer its shareholding in Youfoodz because Mr Groves was neither a director nor a member of My Life.

Mr Groves and his wife Viryan Collins-Rubie have also been revealed in court documents as having allegedly loaned cash to My Fit Fridge, in 2012, shortly before My Fit Fridge went bust.

Mr Groves and his wife loaned the money to My Fit Fridge or its director Lance Giles in 2012, just months before Mr Groves was bankrupted in January 2013 owing creditors $23 million.

Youfoodz is a private company which has been in the spotlight recently because of its bitter legal stoush with a former chicken supplier which twice sought to wind up the company over allegations of unpaid bills.

Youfoodz won the battle with Cordina Chicken.

The company has also been rumoured to have been laying off staff in the past week.

Mr Groves told Lance Giles in an email on November 5, 2012, that he had “advised” Ms Collins-Rubie “and the director of My Life Pty Ltd about your new company”, referring to Youfoodz.

Eddy Groves with his Viryan Collins-Rubie. Picture Annette Dew

“I confirm that neither Viryan or My Life Pty Ltd want to be part of the new venture going forward,” Mr Groves is alleged to have told Lance Giles by email on November 5, 2012.

The email came a day after Mr Giles told Mr Groves by email that he “tried on many occasions to have” Mr Groves and My Life Pty “run through the paper work for signature” in relation to the liquidation of My Fitness Fridge, which was approved by 75 per cent of shareholders.

“I also tried to do the right thing by both yourself and Viryan by providing you both with your shares with the new company and from what I have heard over last week and over the weekend you both don’t want to be part of it,” Mr Giles wrote.

“If you can email me on behalf of yourself and Viryan regarding your decision that would be much appreciated,” Mr Giles wrote.

Mr Groves told Mr Giles on November 5 2012 that he wished to be repaid the $3655 he had loaned Mr Giles “in the dying stage of MFF” on July 6, 2012 when Mr Giles needed the money to pay an overdue advertising bill.

Mr Groves also claimed Mr Giles owed Ms Collins-Rubie $5000, to be paid in instalments of $400 a week.

On November 13 Mr Groves told Mr Giles by email that “Viryan is speaking to the Director of My Life tomorrow to ask him if he will sign the documents, I will let you know tomorrow.”

On November 15, Mr Giles asked again: “Just wanted to see if you managed to get a response from the Director of My Life Pty Ltd?”.

Mr Giles claims in his defence to the claim that he sent an off-market share transfer form to Mr Groves by email on November 15, and that five days later Brendan Power executed it on behalf of My Life.

Youfoodz lodged a change to company details form with the Australian Securities and Investments Commission the following August, to show My Life no longer owned shares in Youfoodz, the defence states.

No date has been set for hearing.