The dairy company that Gerry Harvey invested $34 million into three years ago has gone into receivership.
Through his Harvey Norman retail chain, Harvey bought a 49.9 per cent of Coomboona Holdings, which is based in northern Victoria's Goulburn Valley, to diversify his investments in a tough retail market.
In February, however, Harvey Norman wrote down more than $20m on the investment, a move that was followed by legal action between the shareholders.
The retail giant said it was at odds with joint venture partner Eternal Sound over the future direction of the loss-making entity and "other matters", which led to a decision by shareholders and directors, including Gerry Harvey, to appoint an administrator.
The company's creditor National Australia Bank then appointed McGrath Nicol as receiver and manager of Coomboona Holdings.
Coomboona Holdings owns land and farm assets, and also a pedigree breeding and genetics division. It will continue to trade and most of its 75 staff will be retained as receivers prepare to sell the business.
