Bunnings supplier collapses with $500k debt after worker crushed by truck
A company that had raised $8 million and had landed its products in Bunnings has collapsed after a horrible incident involving a garbage truck.
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An Australian start-up that landed its products on Bunnings’ shelves has collapsed after a worker was crushed to death last year.
The company Bardee launched five years ago and had raised $8 million from investors to develop technology that turned food waste into fertiliser and pet food by using billions of black soldier flies.
In May, it was ordered into liquidation by the Supreme Court of Victoria after a Melbourne storage company and the Victorian State Revenue Office petitioned the court to wind it up over unpaid bills.
The business had outstanding debt worth $500,000 owed to 24 creditors, the liquidator Anthony Lane from Beacon Advisory told news.com.au.
In June last year, a Bardee employee was crushed to death by the garbage collection truck he was driving in the Melbourne CBD.
WorkSafe Victoria said at the time that it was investigating the death of a 26-year-old, who got out of the truck before it rolled forward and pinned him against a post and building wall.
News.com.au understands that the investigation is continuing.
The liquidator, Mr Lane, said Bardee, which was registered under the company name Beyond AG, faced troubles after the workplace death.
“I think it seems as though the unfortunate workplace casualty that they had last year damaged their business in a number of ways and only on my very preliminary understanding of the background of the company do I say that,” he told news.com.au.
“It’s probably too early to say definitively what was the cause – rarely it is one thing in isolation – a lot of the time with businesses like this it's a combination of factors.
“There seemed to be reasonable efforts to commercialise their product rather than rely on capital raising to fund their operations and we will learn more about the causes of the business failures as we progress our investigations.”
Last year Bardee laid off 30 full time employees including scientists, biologists, geneticists, operations specialists and circular economy specialists in a bid to preserve cash amid the tech downturn.
The liquidator wasn’t aware of any employee entitlements being owed, despite the Fair Work Ombudsman (FWO) investigating outstanding entitlements owed to sacked staff last year. “FWO has concluded its investigation into Beyond AG and it is inappropriate to comment further,” a spokesperson said.
However, Bardee co-founder Phoebe Gardner said staff entitlements had been paid.
Mr Lane said the demise of Bardee was “just a sad story all around”.
“At least on its face it seems that we have young entrepreneurs out there trying to make a difference in the world and it hasn’t worked for a range of reasons,” he added.
“I think just generally that is a sad outcome and the fact it impacts not only the directors but others is a reflection of just how difficult times are at the moment.
“Unfortunately the way insolvency works in this country is those people are often pilloried rather than being lauded and respected for work done. We don’t have a society that is particularly tolerant for failure, it’s sad for everyone.”
The company had previously raised $8 million from some high profile names including and Who Gives A Crap co-founder Simon Griffiths, Culture Amp co-founder Didier Elzinga and his wife Greta Bradman.
Now unpaid money is outstanding mainly to suppliers and trade creditors, Mr Lane said, with the landlord and the Victorian State Revenue Office owed the most significant debts.
Bunnings is showing as being owed $700, added Mr Lane.
He said the position of the investors and how they might rank in the winding up was still being investigated.
The liquidator was also aware that Beyond AG had sold the Bardee brand and its recycling technology to a manufacturer in 2023.
“Obviously we are looking into the nature of the sale of the company’s business which happened prior to my appointment and we are working with the directors to get a complete picture of the financial positions and the exposure to creditors and usual process of investigations and preparing a report to creditors in due course,” he noted.
Last year, Beyond AG had secured funds that enabled the payment of staff entitlements and supplier debts, Ms Gardner told the Australian Financial Review.
“Subsequently, delays with third-party insect rendering services created unsustainable operational costs. We are now working closely with the appointed liquidator to secure the most favourable outcomes for remaining creditors,” she said.
It’s been a sharp fall from fortune to failure. Just a year ago Ms Gardner announced their fertiliser called Superfly had hit Bunnings stores and “after one week they have quadrupled the order”, she said on LinkedIn.
“Never before has the food waste circular economy been so available and visible to everyone across Australia. Food waste tipped at Bardee facilities is transformed in seven days into fertiliser and protein products, instead of going to landfills. now, you can grow your garden and indoor plants with sustainable Superfly fertiliser from your local Bunnings store,” she wrote at the time.
sarah.sharples@news.com.au
Originally published as Bunnings supplier collapses with $500k debt after worker crushed by truck
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