The Essential Ingredient, one of Australia’s leading suppliers of specialty ingredients, has entered administration after 38 years of business.
Established in 1986, the business operates three retail outlets, an online shop and a wholesale business to the food services and retail industry and employs more than 60 staff.
Robert Ditrich, Rebecca Gill and Craig Crosbie of PricewaterhouseCoopers (PwC) Australia have been appointed as Voluntary Administrators of The Essential Ingredient group of companies.
Ditrich said the legacy of stock losses during the COVID closure and higher operating costs has all taken a toll on profitability.
“The Essential Ingredient is a long standing and high-quality providore in the food services industry. It has faced a challenging economic and operating environment.”
Syd Weddell and Peter Walmsley, Directors of The Essential Ingredient, said it was with enormous disappointment that following post COVID investments for growth, they faced economic headwinds which have not enabled them to realise the expectation of returning to pre COVID profitability.
“We are committed to working with PwC and our talented staff to continue servicing our highly valued customers.”
The administrators will continue to trade the businesses while undertaking an immediate operational restructure and sale process.
“Our aim is to move quickly to preserve the business and as many jobs as possible. We intend to continue trading and sell the business and assets as a going concern, with strong interest expected from prospective buyers,” said Ditrich.
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