Commercial food equipment provider turning over $9 million collapses after supplier pulls the plug
Wednesday, October 17, 2012/
Administrators have been appointed to commercial food equipment provider Spyral after its major supplier terminated its agreement.
Queensland-based Spyral provided hospitality products and equipment including pizza ovens and fryers to four and five star hotels and resorts, restaurants, casinos and convention centres.
The business had a turnover of $9.6 million a year and employed around eight staff.
Terry Rose of SV Partners was appointed as administrator on October 9. He told SmartCompany he had been forced to cease trading at Spyral.
“What has transpired is that the company’s major overseas supplier has recently terminated its agency and distribution agreement and, as a result, it has forced my hand as the administrator. I cannot continue to trade so I am trying to realise Spyral’s assets,” he says.
Rose says Spyral’s collapse was “precipitated” by the overseas supplier, Middleby Worldwide, terminating one part of the company’s agency agreement prior to the appointment of administrators and not providing Spyral with any further credit going forward.
“Since then the overseas supplier has formally terminated the company’s whole distribution and agency agreement, which accounted for the majority of its business,” he says.
Rose says the ANZ bank is a secured creditor, along with various unsecured creditors who are owed over $1 million.
Spyral’s former employees, most of whom Rose says “jumped ship” before SV Partners were appointed, are also owed entitlements.
Rose has called for expressions of interest and he says Middleby Worldwide is one of the interested parties.
“My role is really just to maximise returns. We have about six parties interested at the moment so hopefully a deal can be done,” he says.
The first meeting of creditors will be held tomorrow on October 18.