The smiley-faced bakery chain Pie Face is in receivership and will soon be on the market as it faces its second collapse in as many years.
Pie Face, which entered voluntary administration in 2014, has now gone into receivership, and a small number of loss-making stores will also close.
Pie Face, which is still subject to a Deed of Company Arrangement following its voluntary administration process, is likely to be wound up.
The business of the company, however, is considered by the receiver, Christopher Palmer of O’Brien Palmer, to have potential, and it will continue to trade under his control.
A new CEO, Bruce Feodoroff, and a new CFO, Michael Crag, have been appointed to oversee the restructured company as it enters a public tender process.
The new senior management team intends to continue to grow the business in Australia and internationally, according to a statement by O’Brien Palmer, and “has expressed confidence in the future prospects of the business if a restructure can be successfully implemented”.
Pie Face’s primary funder, TCA Global Credit Master Fund (TCA), appointed Palmer initially as an investigating accountant to Pie Face, but after his preliminary investigation, in which he found excessive overhead costs, a restructure was initiated.
Palmer said creditors owned money prior to his appointment as receiver can contact the administrator, Jirsche Sutherland, to register claims against the company.
