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Aussie Farmers Direct franchisees have ceased deliveries after the fresh food delivery company went into voluntary administration this week.

The company blamed competition with big supermarkets and the low cost of imported foods for its closure.

The closure is believed to affect 260 employees, 100 franchisees, and 100,000 customers throughout Australia.

Aussie Farmers Direct started in 2005 and was one of the first to deliver items such as fresh fruit and vegetables direct to consumers' doors on a subscription basis.

It is believed there were debts held by entities associated with local and overseas investors.

A meeting of creditors will be called next week.

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