South Australian company, Spring Gully Foods, has ceased trading and appointed an administrator, citing the loss of key contracts, rising costs, and competition from cheaper imports as reasons behind its closure.
The company is known for its range of sauces, relishes, pickled onions and gherkins and has been operating for almost 80 years.
It employed around 34 people, all of which have been made redundant. Media reports over the weekend said another South Australian food manufacturer, Vili’s, was offering an employment lifeline to Spring Gully employees.
The company went into voluntary administration in 2013, with debts of more than $4.9 million, but was saved following an outpouring of public support to keep the business afloat. It cleared its debts from that period in 2017.
James McPherson from Meertons has been appointed administrator. The first meeting for creditors is on 3 November.
