Australian condiments maker Spring Gully Foods has reportedly gone into administration, leaving 34 employees out of work.
The South Australian business, led by fourth-generation family members Russell Webb, Kevin Webb and Tegan Hack, has outstanding unsecured debts of A$3.8m ($2.4m), according to local media reports.
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The company, known for sauces, relishes, pickled onions and gherkins, has operated for nearly eight decades.
It is the second time in a little over ten years the manufacturer has entered administration, having previously done so in 2013.
James McPherson of Meertens has been appointed administrator. Just Food has approached the accountancy firm for confirmation and comment.
A first creditors’ meeting is scheduled for 3 November.
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By GlobalDataMcPherson told 9News the business had recently lost several major contracts and “that’s resulted in some operating losses”.
He added: “I don’t anticipate that all creditors will be paid in full.”
McPherson said a repeat of the 2013 recovery was unlikely, noting: “You’re competing against international players who can provide the same product, a similar product at a lower cost.”
In 2013, the company left administration after consumer support boosted sales and the company secured a new contract.
The company’s assets will be sold to repay debts, and there is a possibility the brand’s intellectual property could be sold to another buyer.
“It may happen, we may still see Spring Gully products on the shelves,” McPherson was quoted as saying.
In the years that followed the earlier administration, the company focused on its core lines of relishes and pickles, and on products with roots in the 1950s and 1960s, while producing relishes, pickles, jams and honey at its Dry Creek facility in northern Adelaide.
It also manufactured under the Leabrook and Gardener brands and benefited from exports to the Asia–Pacific region.
