Tasmanian agribusiness TasFoods has entered voluntary administration after failing to secure a buyer for its Nichols Poultry business.
The company announced on 12 March that partners from KPMG Australia – Tim Mableson, David Hardy and Emily Seeckts – have been appointed as joint and several voluntary administrators to the group.
TasFoods said the decision followed an unsuccessful process to divest Nichols Poultry, which the board had been pursuing as part of efforts to stabilise the business.
In September last year, TasFoods reported sales revenue from poultry and cheese was down 21 per cent to $19.9 million due to the poultry oversupply and heavy discounting on wholesale pricing across the channels.
Cuts at head office saw operating expenditure for 1H25 of $1.2 million – a 33 per cent decrease pcp. But sales revenue from continued operations was $4.5 million lower than pcp, at $20 million.
Sales revenue and other income from Pyengana Dairy in 1H25 was $0.8 million, reflecting a 38 per cent decrease pcp, primarily due to the constraints of cheese aging in the cellar.
“The board of TasFoods has determined that voluntary administration is now the most appropriate way to restructure the group,” the company said in its ASX announcement.
Control of the company has now passed to the administrators, who intend to continue operating the business while assessing restructuring options.
Business to continue trading
According to the administrators, TasFoods will continue to trade on a business-as-usual basis during the administration process as potential pathways for the company are evaluated.
These options include a sale of the business as a going concern or a recapitalisation of the group.
The company also indicated it had exhausted efforts to secure a buyer for Nichols Poultry prior to entering administration.
“The board has taken every step it could to find a buyer for the Nichols Poultry business,” the company said, adding it is seeking support from both state and federal governments to help maintain operations and protect employees and suppliers during the process.
Creditor meeting scheduled
A first statutory meeting of creditors has been scheduled for 23 March 2026 at 3:00pm AEDT, to be held within the eight-business-day timeframe required under administration rules.
Meeting notices will be distributed to creditors ahead of the session.
In the meantime, the administrators are calling for interested parties to come forward regarding a potential acquisition or recapitalisation of TasFoods or its assets.
“Parties who are interested in recapitalising and/or acquiring TasFoods or any of its assets are asked to urgently contact the administrators,” the company said.
TasFoods operates across several food categories and regional supply chains in Tasmania, and the outcome of the administration process will determine whether the group can continue under new ownership or through a financial restructuring.
