Coffex Coffee being prepped for sale after administrators appointed

Coffex Coffee – one of the largest coffee manufacturers in the Southern Hemisphere – will be put on the sale block after falling into administration.

Coffex, a well-known brand in Australia and across the region, has been placed in administration.

Melbourne-based Coffex Coffee will be offered for sale after being placed in administration.

The quantum of debt owed by the company is not clear at this stage however restructuring firm Ankura said money was owed to suppliers, employees and the Australian Taxation Office.

Coffex was founded in Coburg Victoria in 1959 by two Italian immigrants according to the company’s website, however changed hands in 1996.

Since then it expanded first to New Zealand and Malaysia and now distributes coffee to Vietnam, Indonesia, Singapore and China.

Ankura senior managing director Liam Healey said the company was a significant player in the coffee industry.

“Coffex is one of the largest coffee manufacturers in the southern hemisphere and operates a substantial facility in Melbourne with the capacity to roast up to 30 tonnes of coffee per week,’’ Mr Healey said.

“The business has an extensive distribution network around Australia with facilities in major cities, and owns a range of well-known brands.’’

Mr Healey said Coffex would continue to be operated by the administrators.

“The administrators are continuing to run the business as usual and supply coffee to its customers throughout Australia and New Zealand,’’ he said.

“Operations are continuing as normal whilst we seek a buyer for the business. We will be commencing a sale process for the business shortly.

“We are still reviewing the financial position of the company, however creditors include suppliers, employees and the ATO.’’

Mr Healey said the pandemic, as well as market fragmentation, had been a key cause of the company’s difficulties.

“Coffex has been operating for over 60 years,’’ he said.

“In recent years the company has faced challenges from Covid and increasing competition due to an influx of new competitors into the coffee roasting and wholesaling market.

“This has created a challenging environment for traditional operators like Coffex.’’

The company is now based in Brunswick in Melbourne, and has a roasting facility in Malaysia which opened in 2015.

Coffex’s managing director is Melbourne-based Fong Loong, who is also a shareholder.

The company’s four other shareholders are based in Malaysia and Singapore.

Originally published as Coffex Coffee being prepped for sale after administrators appointed