Byron Bay Cookie Company has entered into voluntary administration though the business plans to try to trade its way back into financial health.
The board had exhausted all avenues prior to making the decision to appoint voluntary administrators, according to Jacqueline Schurig, the director of the company.
“The board has the support of employees, customers and suppliers and is confident that the business has a future and sees this as an opportunity to restructure its manufacturing division. As such it is the board's intention to propose a Deed of Company Arrangement,” Schurig said.
Earlier this week the Australian Tax Office sought to wind up the business in documents filed with the Federal Court.
The cookie company is owned by Slater International, which also owns the Luken & May Biscuits and Falwasser Crispbreads brands.
However, the voluntary administration applies only to the manufacturing side of the Byron Bay business, Byron Bay Cookie Company Pty Ltd, not to the retail side of the business, Byron Bay Cookie Group.
Byron Bay Cookie Company supplies cafes and gourmet food stores across Australia including McCafe, Michel's Patisserie, and selected Woolworths, Coles and IGA Supermarkets.
It also supplies several international stores and has partnerships with Qantas Airlines, Virgin Australia, Tiger and Strategic Airlines.
A Deed of Company Arrangement means the company could potentially be returned to the hands of its directors or to a purchaser.
The company's administrators, Lawler Partners, said the business would continue to trade in order to maximise returns to creditors.
“We intend to trade the business and are working with the board, employees, customers and suppliers and are hopeful that a Deed of Company Arrangement proposal will be submitted that will maximise a return to creditors,” John Vouris of Lawler Partners said.
