Food manufacturer, Gourmet Food Holdings, which owns the iconic Australian brand Rosella, has been placed into receivership.
Other than Rosella, which supplies soups, sauces and relishes, Gourmet Food Holdings' other businesses – now in the hands of receivers and managers – are Pitango, (based in Auckland, NZ and Seven Hills, Sydney) and Waterwheel (based in Dandenong, Victoria).
Ferrier Hodgson partners Steve Sherman, Jim Sarantinos and John Lindholm have been appointed receivers and managers.
A statement distributed by Ferrier Hodgson reads, "The receivership followed an extended period of support from the group’s secured creditor during which time the group had been working towards a sale. The receivership appointment was made by the secured creditor, following the appointment of voluntary administrators by the companies on Friday 30 November 2012."
According to Sherman, the receivers will now be undertaking an urgent assessment of the financial position of the group and will be talking with employees, customers and suppliers to determine whether or not operations can continue.
An expressions-of-interest campaign will be launched in the next 24 to 48 hours in an effort to identify potential buyers for the group or its individual businesses.
Hugh Gurney, a respresentative from AUSVEG, the national industry body representing vegetable and potato growers, said Australia needs to supports its home-grown food manufacturers before all our food is produced overseas.
"The loss of yet another food processor could have large ramifications for the Australian food production sector, which is already struggling as a result of the high Australian dollar and cheap processed food products being imported from overseas," Gurney said.
"The past 18 months have seen the collapse or closure of a number of prominent vegetable growing and processing operations in Australia and we hope that this fate can be avoided with Rosella."
The AFR today reports that Chinese company, Bright Foods, is a potential buyer, as is Food Spectrum and Singapore-based Wilmar International, which last year bought sugar company CSR.
Gourmet Food Holdings' demise comes at a time when food manufacturers across Australia are struggling with the high Australian dollar, pricing pressure from the big retailers and the dominance of private labels. Read more on the key issues facing the industry here.