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Nourish Foods enters voluntary administration

(Source: Nourish Foods)

Family-owned food company Nourish Foods, makers of Whole Kids, has entered into voluntary administration as it struggles to maintain working capital and keep the business afloat.

The company launched a third equity crowdfunding campaign via Birchal in May, which was put on hold.

Tim Heesh and Mark Everingham of TPH Advisory have been appointed voluntary administrators for the company and are now urgently seeking potential investors or buyers.

“The owners had been attempting to secure a financial investment partner over the past few months,” explained Heesh.

“However, time has run out, and their working capital requirement has become urgent.”

Established in 2005 by Monica and James Meldrum, the Melbourne-based company manufactures a range of organic, additive-free and allergen-friendly snacks.

Following the introduction of Whole Kids, the company launched two additional brands – Offbeat and Just Add – this year as part of its strategy to expand into a multi-brand business.

According to the company’s Birchal profile, it recorded more than $23 million in revenue over the past five years and has seen strong sales in Woolworths stores.

It was also the first food company in its category to become a certified B corporation.

“It is not often that a well-established business with reputable and trusted brands like these comes along,” added Heesh.

“The business represents an outstanding strategic opportunity for an investor to acquire a brand portfolio that should ultimately become household names and leaders in the FMCG healthy snack market.”

Despite months of negotiations and due diligence with a prospective investor, co-founder Monica Meldrum told shareholders that the deal did not proceed, reports SmartCompany. 

Without the ability to restart the crowdfunding campaign, the company decided to go into voluntary administration. 

“After 18 years of trading and leading the market with product innovation and driving forward the role of socially conscious business in Australia, we are devastated we have come to this point; not only personally, but also for the incredible support we have received from investors … our suppliers and our customers,” said Meldrum.

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