Australian company that delivers fresh food nationally has collapsed

A national fresh food delivery business has collapsed with the boss blaming “snap lockdowns” for its demise.

A national fresh food distribution company has gone bust, with its devastated boss blaming “snap lockdowns” for sending the business to the wall.

In2food, which also trades as Yarra Valley Farms Australia, delivered the hammer blow to staff late on Friday afternoon.

They were told that receivers FTI Consulting had been appointed, with plans to keep the limping business afloat until a new buyer was found.

In2food Australia chief executive Bill Kollatos tried to soften the distress of staff with a letter attached to the receivers’ circular.

“The disruption of snap lockdowns in multiple states in combination with the problematic retail journey within the Ready To Eat meals category, has left us with no choice but to enter into Voluntary Administration,” Mr Kollatos said.

“In consultation with our lender, they have appointed a receiver to trade the business and undertake a recapitalisation/sale process.”

The company, which also traded as Middle Road Investments and Inspired Food Solutions, was a key link in the wholesale supply chain for farmers.

In2food supplied supermarkets, hospitals, aged care, retailers, airlines and restaurants with fresh farm foods.

In2food Australia chief executive Bill Kollatos.

The company will continue to trade during the administration period, with no job cuts announced in Friday’s statement.

However, FTI Consulting did include information for staff on how to access the Federal Government’s Fair Entitlements Guarantee.

This means the government will cover long service leave or unpaid annual leave if the company collapses further.

FTI Consulting confirmed that the company had enough money to pay staff wages while it looked for a new owner.

Mr Kollatos said he was determined to keep the business going with the help of the administration process and the support of the company’s lender.

“We strongly hold to the belief that the collective support of all stakeholders through a short period of disruption will restore the business back to its core strengths and will continue to provide employment, opportunity for suppliers to grow, and a great value proposition to its customers,” he said.

He claimed there were also interested buyers who had been in contact.

Kathryn Evans, Kate Warwick and Vaughan Strawbridge were appointed receivers, according to the letter from FTI Consulting.

“We understand this is a very difficult and uncertain time for all employees. We thank you for working with us as we go through this process,” the receivers said in a statement to staff.

[e-mail]

Originally published as Australian company that delivers fresh food nationally has collapsed