United Petroleum acquires Pie Face

TROUBLED bakery chain Pie Face, which collapsed into administration in 2014, has finally been snapped up by a buyer.

FANS of the hot pie business Pie Face rejoice. The troubled chain has been sold to United Petroleum by receivers for an undisclosed sum.

The Australian-owned petrol giant, which has nearly 400 outlets around the country, announced the move on Thursday.

Pie Face, founded in 2003, collapsed into administration in 2014 owing tens of millions of dollars to Macquarie after an overly ambitious store rollout — the chain had close to 80 stores at its peak.

In a rescue deal, financier TCA Global took over the loans to Macquarie, but the turnaround plan failed and TCA appointed O’Brien Palmer as receivers and managers late last year.

In January, O’Brien Palmer said it had closed 11 loss-making stores and opened three new stores for a total of 32, with the chain close to profitability once more.

A United Petroleum spokesman said the intention was to sell Pie Face products across its network of stores, but it was “too early to provide any details” of new product development.

In a statement, United Petroleum said it would use “its scale and nearly 40 years of retail experience ... to help grow the food chain and protect the inherent value of the Pie Face brand”.

“When the opportunity to acquire Pie Face emerged we identified tremendous value in its brand, as well as its growth potential as a stand-alone business,” United Petroleum chief executive Gary Brinkworth said.

“We took the decision that Pie Face would fit perfectly with our strategy of growing our business and achieving scale by expanding into new categories while growing customer numbers and building capability.”

Under the deal, Pie Face CEO Bruce Feodoroff will stay in his role. United says it has committed to maintaining supply for Pie Face, ensuring “business as usual” for its 80 remaining staff.

“This acquisition provides certainty for staff as many local jobs and small business operators have been protected and staff entitlements have been retained,” Mr Brinkworth said.

“United will benefit from retaining this experience and corporate knowledge. United is a financially strong Australian business with a strategy in place to ensure Pie Face has a successful future.”

The sale is expected to be finalised shortly.

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Originally published as United Petroleum acquires Pie Face