Health food company, Halo Food Co, has entered voluntary administration following a strategic review process in May.
Halo Food Co, parent company of Tonik, KeyDairy, and Gran’s, stated that the strategic review process in May did not meet expectations and that financial support for the company has been withdrawn, necessitating the board’s decision to enter voluntary administration.
KordaMentha was appointed administrators on 24 August, and the following day David Hardy, Ryan Eagle, and Emily Seeckts of KPMG were appointed as receivers and managers of the company with day-to-day control of the assets and trading operations.
Bids for the company are due on 31 August, with the assets available including inventory, intellectual property, plant and equipment, and customer contracts.
In its 2023 full-year financial results, Halo Food Co realised record revenue of $82.1 million, growing from $59.9 million in FY22, while normalised EBITDA declined from $2.3 million in FY22 to $0.7 million in FY23.
The company stated that the decline in normalised EBITDA was driven by underperformance in NZ contract manufacturing, The Healthy Mummy and the Bar Line.
Earlier this month, Halo Food Co announced it had divested 100 per cent of the share capital of The Healthy Mummy to men’s healthcare platform Mosh for $588,540.
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