Frozen dessert giant Sara Lee has collapsed into voluntary administration, appointing FTI Consulting to keep the mixers churning while pursuing a sale or restructure.
The decision will rattle more than 200 local Sara Lee staff, including many workers at the Central Coast manufacturing hub responsible for many of its cakes, puddings, crumbles, and pies.
Sara Lee’s local operation, which first arrived in Australia as an offshoot of its American parent company in 1971, has reportedly tapped Vaughan Strawbridge, Kathryn Evans and Joseph Hansell as administrators.
Speaking to the Sydney Morning Herald, Strawbridge said they expected significant interest in the freezer aisle icon and hoped to secure the business’ future as soon as possible.
The brand operated under the McCain umbrella between 2013 and 2021, when it was auctioned off to New Zealand-based private equity operation South Island Office.
Under the plan, South Island Office Sara Lee combined with Christchurch-based Original Foods Baking Co. into an trans-Tasman baking powerhouse.
At the time of the sale, Mark Mackaness, group chief executive officer of the newly-combined baking titan, said the “future is bright for Sara Lee”.
“Uniting two great baking businesses that will work together to grow into Australia and New Zealand’s premier frozen baked goods supplier is genuinely exciting.”
The Sydney Morning Herald states the years since have not kind to the business, as spiking operational costs, the disruption of rail links due to floods, industrial action, and the demise of a major refrigeration logistics company took their toll on the venture.
More to come.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
