Potato company Mondello Farms is in receivership.
Adelaide Now reported restructuring and corporate advisory firm McGrathNicol was appointed as receivers last week after Heard Phillips were assigned as administrators of the company.
McGrathNicol partner Sam Davies said it is still too early to establish the reasons for the failure of the company but noted it was under-capitalised and had experienced heavy operating losses from which it was not able to recover in 2011/2012 when industry prices for potatoes fell.
“We will continue the company’s operations as normal whilst an urgent assessment is undertaken of the requirement for the management and harvesting of existing crops and preparations were made for planting the winter crop,” Davies said.
“We will be working closely with contract growers, employees, customers, critical suppliers and the Mondelo Farms management team over the next two weeks to stabilise the business operations, including reviewing existing supply and distribution arrangements.”
Davies added the Mondello Farms business will be taken to the market for a sale on a ‘going-concern’ basis.
Mondello Farms is a large scale wholesaler of processed potatoes in the national potato industry.
It employs about 140 staff in its South Australian and Victorian operations.
Image: Mondello Farms Facebook