Major fresh produce supplier HS Fresh Food has been placed in administration
A national supplier of salads and fresh produce to Coles and Woolworths, has been placed in voluntary administration, with a sale or restructure of the business on the cards.
HS Fresh Food Group, which is a major supplier of salads and fresh produce to Coles and Woolworths, has been placed in voluntary administration, with more than 500 jobs across the nation reliant on a successful sale or restructure of the business.
Tasmania-headquartered HS Fresh Food is the parent company for the brands Houston’s Farm, Sunfresh, Gourmet Selections and HS Fresh Farms, with its products including bagged salad leaf varieties such as baby spinach and rocket, and pre-packaged salads.
Sunfresh was among the assets owned by collapsed ASX-listed fund Blue Sky Alternative Investments, which owned the Adelaide-based company through its Blue Sky Private Equity Sunfresh Fund, set up in 2017. The fund was forecasting $30m in revenue and $4m in earnings from the business that financial year, a Morningstar report from the time says.
HS Fresh Food Group was formed through a merger of Sunfresh and Houston’s Farm, with Queensland-based Fortitude Investment Partners a major shareholder.
Other shareholders, according to company documents lodged with the corporate regulator ASIC, include the families which have sold their businesses into the group, such as Tasmania’s Houston family.
Fortitude partner Nick Dignam - also formerly head of growth capital at Blue Sky - is a director of HS Fresh Foods, along with Raymond Butcher and Michal Wallas.
Fortitude’s website says it also owns fellow commercial food business Birch & Waite, which Quadrant Private Equity reportedly took a stake in through its seventh buyout fund earlier this month.
HS Fresh Food has a national network of farms and food processing and manufacturing sites, with operations in Queensland, South Australia, Tasmania, Western Australia and New South Wales.
The company employs more than 500 people according to its online profile.
FTI Consulting’s Ben Campbell, Joanne Dunn and Vaughan Strawbridge have been appointed as administrators, and Mr Strawbridge said on Tuesday they intend to seek a restructuring and/or sale of the group, while continuing to trade the business.
“We are working with HS Fresh Food Group’s management team and staff, and other stakeholders to continue operations while we secure the future of the business,’’ Mr Strawbridge said.
“A sale process for the business and assets of the HS Fresh Food Group was undertaken and in advanced stages at the time our appointment.
“We intend to continue this process, whilst exploring all available options, and are confident of completing a sale and/or recapitalisation of the business in an expedited time frame with the support of all relevant stakeholders.”
FTI said HS Fresh Food was “a leading player in the food industry with national coverage and one of the broadest sets of growing and processing capabilities within the fresh food sector. “The vertically integrated, multi-branded and Australian-owned food producing and processing business specialises in fresh salads, bagged salad leaves, deli products, ready-made meals and pre-prepared vegetables.’’
It is understood the major supermarket chains do not anticipate any disruption in supplies at this time.
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