A healthcare group turning over millions of dollars from the sales of vitamins and other consumer products has collapsed into voluntary administration.
Direct Wellbeing Pty Ltd appointed external managers on April 4.
Todd Gammel and Barry Taylor from HLB Mann Judd are acting as joint voluntary administrators and a creditors meeting is due to be held on April 13 in Sydney.
The administrators are seeking urgent expressions of interest in Direct Wellbeing’s wholly-owned subsidiary, Australian NaturalCare Products.
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Australian NaturalCare Products turns over around $17 million and is profitable, according to administrators.
The business operates two brands, Australian NaturalCare and Pure Vitamins, with a customer base of more than 70,000 people.
Together, the two brands sell more than 90 vitamins and supplements approved by the Therapeutic Goods Administration and 500 other productss, including skincare products, protein bars and cleaning supplies.
The company has the potential to grow quickly thanks to “new products and expansion into Asian markets”, according to an advertisement placed in the Australian Financial Review earlier this week.
Todd Gammel, partner at HLB Mann Judd, told SmartCompany Australian NaturalCare Products is continuing to trade while its parent company Direct Wellbeing is in administration.
“It’s full steam ahead,” Gammel says.
“It’s trading profitably.”
Gammel says he has already received “strong” interest in the Australian NaturalCare Products business.
“Basically, it’s a great opportunity for somebody to pick up a profitable Australian business and look to springboard into the Asian market,” he says.
Direct Wellbeing is not the first health retail business to collapse into voluntary administration in recent months.