In2Food Still Seeking Deductibles, As Document Reveals $ 53 Million Due

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Source: Unsplash / Peter Wendt.

Food wholesaler In2Food is advertising new franchisees to join the company, as documents filed with the corporate regulator show the company owes more than $ 53 million to creditors, including small businesses.

In2Food collapsed under administration in mid-August, citing ongoing disruption caused by lockdowns; however, the business is still in business as the sales process continues.

The company was formed in 2018 by the merger of seven other food companies and is also called Yarra Valley Farms Australia. She supplies fresh produce – which she buys from small farms and producers – to supermarkets, cafes, restaurants, elderly care facilities and schools.

The company has 17 “territory managers” or franchisees, according to a post from an employee on LinkedIn, and is currently announcing eight new franchise opportunities on AnyBusiness.com. The cost to purchase a franchise is $ 7,500.

In a video on Facebook In November 2020, In2Food chief executive Bill Kollatos said the company was looking for new franchisees in all Australian states and territories, and that franchises would be suitable for “entrepreneurial” people who had worked in hospitality or hospitality. catering and wanted to “stay connected” to the industry after a difficult 2020

However, these challenges continued until 2021, with Kollatos tell staff in August, the company was due to enter voluntary administration due to “the disruption of instant locks in several states, in combination with the problematic retail journey in the ready-to-eat meal category.”

Deloitte directors Jason Tracy and Salvatore Algeri were appointed to oversee the administrative process on August 13, with FTI Consulting subsequently appointed as the company’s receiver.

According to a report of receivers submitted to the Australian Securities and Investments Commission and published here, the company and its related entities owe $ 53 million to creditors.

The biggest creditor is the Commonwealth Bank, which owes $ 24.4 million, and its South African parent company says it owes it $ 12.5 million.

However, many of the creditors are small farm and producer businesses, some of which owe tens of thousands of dollars.

In the report, FTI Consulting’s receiver Kathryn Evans said the company had “significant tangible and intangible assets”, however, the value of these assets could not be disclosed as this could affect ongoing sale negotiations. .

The report says the company owes nearly $ 10 million, but the source of that debt has not been disclosed.

According to Sun Herald, the company was able to keep staff during administration, but hours were reduced.

SmartCompany contacted Deloitte for comment, but was directed to FTI Consulting, which declined to comment on the receivership.

SmartCompany also contacted Bill Kollatos for comment.

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