Frozen meals company with $5m turnover collapses, but say business will heat up once sold
Tuesday, June 17, 2014/
Frozen meal delivery service Muscle Meals Direct has collapsed into voluntary administration, following an internal dispute among its directors.
The Sydney-based company manufactures and distributes high-protein, calorie-controlled frozen meals to gyms and supplement stores across Australia.
A company spokesperson this morning confirmed to SmartCompany administrators had been appointed to the company, but said Muscle Meals Direct will continue to manufacture and trade while a sale process is underway.
“The administrators will conduct the sale of the business,” says the spokesperson. “Our goal is to continue to operate.”
The spokesperson would not confirm the amount Muscle Meals Direct owed its creditors or who the creditors were, but said the debt was rolling.
The company’s 20 or so employees are expected to stay on board.
Steven Arthur Gladman and David Ingram of Hall Chadwick were appointed as administrators in May.
Gladman told SmartCompany the business had a turnover of about $100,000 a week or around $5 million per annum.
He says the company’s major creditor is the Australian Tax Office, to which is owes $270,000. Its liabilities are $420,000.
Gladman says he has already received considerable interest in the sale of the business.
“We’re in the process now of trying to finalise that. There are a number of interested parties,” says Gladman. “We’ve been trading on through the whole period and I’m confident about the sale.”