Spring Gully may trade out of financial woes
Spring Gully may trade out of financial woes
Spring Gully creditors have been told the recent surge in public support could save the struggling manufacturer from going under.
A wave of public support for the Adelaide-based food manufacturer cleared supermarket shelves of its products after announcing it was going into administration.
The administrator now believes Spring Gully can trade its way out of trouble, but at a creditors meeting today, there were mixed emotions.
“We get nothing if we put them into liquidation,” one creditor said.
Another creditor said: “I think the place should be sold and sold off to someone that’s capable, ie, someone like Dick Smith.”
Dick Smith Foods is one of the biggest among around 80 creditors standing to lose thousands.
Eddie Brae from Dick Smith Foods said the entrepreneur is speaking with the Webb family, which owns Spring Gully.
At its worst, Spring Gully’s turnover dropped from around $500,000 a week to $200,000 - but local support has seen sales skyrocket to $1.5 million in the past week.
The administrator has 25 days to crunch the figures before facing creditors again with his recommendations.
“I haven’t seen a turnaround quite as dramatic as this, and I’ve been doing this for 30 years,” administrator Austin Taylor said.
It is hoped a raft of new contracts with major supermarkets will keep Spring Gully in business long term.
