South Australian condiments manufacturer Spring Gully Foods has entered into administration, with an outstanding unsecured debt of $3.8 million, according to media sources.
The fourth-generation business, operating for 80 years, sells sauces, pickled onions, gherkins, and relishes.
James Stuart McPherson of Meertens, the appointed administrator, told 9News that the business had recently lost several major contracts, resulting in some operating losses.
McPherson said he did not expect that all creditors would be paid in full, despite the company selling its assets to repay its debts.
There may also be the possibility of the brand selling its intellectual property to other buyers.
This is the second time that Spring Gully Foods has been in administration, the first being in 2013, when the company managed to secure a new contract following patron support.
The company’s decision to enter into administration will leave 34 employees without work.
