Aussie company collapses after 34 years
Another player in Australia’s food industry, which was a recognisable brand, has gone bust with 60 jobs at risk.
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A major Australian food supplier, which had been operating for 34 years, has collapsed.
The companies trading as The Essential Ingredient, which was one of Australia’s most recognised speciality food brands, entered into voluntary administration on Thursday.
It comes just three days after South Australian dairy company Beston Global Food Company, which employs 160 people, went under.
The Essential Ingredient was established in 1986 and is one of Australia’s leading suppliers of specialty ingredients, which are sourced from local and international producers, including professional cookware, kitchen equipment and culinary books.
It employs more than 60 staff and the company had been featured on reality TV show MasterChef Australia.
The business operated three retail outlets, an online shop and a wholesale business to the food services and retail industry.
Robert Ditrich, Rebecca Gill and Craig Crosbie of PricewaterhouseCoopers (PwC) Australia have been appointed as voluntary administrators.
They will continue to trade the businesses while undertaking an immediate operational restructure and sale process.
The Essential Ingredient directors Syd Weddell and Peter Walmsley said there was “enormous disappointment” that the company had collapsed.
Despite post-Covid investments in growth, the company “faced economic headwinds which have not enabled us to realise the expectation of returning to pre covid profitability”.
“We are committed to working with PwC and our talented staff to continue servicing our highly valued customers,” they added.
The Essential Ingredient is a long standing and high quality providore in the food services industry, administrator Mr Ditrich added.
“It has faced a challenging economic and operating environment. The legacy of stock losses during the covid closure and higher operating costs has all taken a toll on profitability,” he said.
“Our aim is to move quickly to preserve the business and as many jobs as possible. We intend to continue trading and sell the business and assets as a going concern, with strong interest expected from prospective buyers.”
The Essential Ingredient group is made up of five companies that include Essential Wholesale NSW, J.S. & S Weddell, The Vital Ingredient (Retail), Essential Distribution Australia and Essential Franchise.
Many Australian food businesses have been succumbing to tough economic conditions this year.
This includes a meal delivery service in Sydney and Newcastle called Hartley Health and hospitality group BCN Events Group which collapsed into liquidation in May, with all seven of its business ceasing to trade immediately while 90 staff were affected.
The Botswana Butchery chain which operated as a high-end steak restaurant across three cities went bust, with debts of more than $23 million and more than 200 staff sacked.
While the last remaining NSW store of fast food chain Lord of the Fries appears shut down after the landlord repossessed the property.
Earlier this year, after 18 years in business, Asian fusion restaurant Gingerboy shut down also blaming “market pressures since Covid lockdowns”.
sarah.sharples@news.com.au
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