The administrators of troubled confectionery company Betta Foods have been unable to save the business and have instead agreed to sell the company’s assets to Prydes Confectionery Holdings.
Prydes makes branded and contract confectionery free from artificial colours and flavours.
The assets of Betta Foods, which makes Capricorn licorice and Eskimo chocolate snowballs to be sold includes plant and equipment, intellectual property, business names, stock, and rights of vendor under contracts with customers.
The sale will also result in the loss of 170 jobs.
Betta Foods was recently acquired by restructuring firm Re:Capital, which also placed another recently acquired Melbourne confectioner, Ernest Hillier, into administration around the same time.
Administrators Cor Cordis, have said the Betta Foods collapse was due to insufficient working capital, an inability by the company to meet delivery deadlines, and the holding of stock by a transport supplier.
It had been hoped that the business would be sold as a going concern. “We are expecting formal offers by the end of this week, and the signs are encouraging that there is a future for Betta Foods” Cor Cordis said at the time.
