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An ASX-listed food, beverage and nutrition retailer has abruptly halted trading on the stock markets as external administrators took over the business.
Australia’s 12th biggest home builder Porter Davis has collapsed into liquidation with the liquidators saying they are urgently seeking solutions for customers and employees including finding buildings to take over unfinished contracts. 1,500 Porter Davis homeowners in Victoria will be alarmed by the news as well as a further 200 Porter Davis homeowners in Queensland. Porter Davis said the company exhausted options to secure funding to keep the business operating.
At the end of last week, Halo Food Co went into voluntary administration and the next day, receivers were also appointed.
The firm boasted a range of big name food products, including acquiring health and nutrition brand The Healthy Mummy, beverage brand Tonik and milk manufacturer Key Dairy, among others, and selling them on to major retailers.
It’s understood The Healthy Mummy was sold just a few weeks before the administrator’s appointment to another company called Mosh.
Halo Food Co traded as Halo Food Co. Limited or ‘HLF’ on the Australian sharemarket and at the time of the halt, it was trading at $0.0070 per share.
In a market update last week, the flailing company told investors the business “will be placed in trading halt at the request of HLF, pending it releasing an announcement”.
Shortly afterwards, investors were hit with the news that the company had gone into external administration.
The Healthy Mummy brand was sold weeks before the administration appointment.
“The securities of Halo Food Co. Limited (‘HLF’) will be suspended from quotation immediately under Listing Rule 17.3, following the appointment of Rahul Goyal, Kate Conneely and Michael Korda of KordaMentha as Voluntary Administrators of the Company,” the announcement read.
The following day, a concerned creditor appointed David Hardy, Ruan Eagle and Emily Seeckts from KPMG’s insolvency team as receivers.
Halo Food Co blamed its failed prospects on being bought out as the reason for its apparent collapse.
“The Board have advised that the Company commenced a strategic review process in May 2023 to pursue unlocking value through divestment, M&A and other opportunities,” a subsequent announcement read.
“Unfortunately, the process has not delivered to expectations and financial support to the Company has been withdrawn.”
The company’s day to day operations and its assets are now under the control of administrators and receivers.
They are looking to sell the company’s assets, which includes products, intellectual property and contracts with customers and major retailers.
An annual general meeting was due to be held for investors at the end of the month but this has been cancelled.
The Tonik brand is now up for sale.
On Halo Food Co’s still active website, the firm claims says it sold products to supermarkets and retail chains across New Zealand and Australia and exported them overseas to China, Hong Kong, Taiwan, Vietnam and the Middle East.
According to The Australian, Halo’s manufacturing arm made $51.8m in revenue in the latest financial period, a 26 per cent increase compared to the previous year.
One of its prominent brands, the Tonik beverage business, grew by 71 per cent thanks to deals struck with supermarkets, convenience stores and service stations.
This ultimately wasn’t enough to turn the tables however. Halo’s last market value was reportedly $2.8m when it halted shares.
alex.turner-cohen@news.com.au
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