[ad_1]
By Kylie Stevens For Daily Mail Australia
03:39 06 Apr 2023, updated 05:28 06 Apr 2023
- CoLab goes into voluntary administration
- Co-founders struggled to obtain fresh capital
- EY hopes to find new buyer for start-up
A popular gourmet meal delivery start-up has become the latest Australian business to collapse.
CoLab, formerly known as ChefPrep went into voluntary administration last week after it failed to secure more capital, just two years after it was established.
Founded by Elle Curran and Josh Abulafia, the Sydney-based start-up offers ready-to-cook meals from 150 restaurants.
CoLab is described on its website as a 24-7 online destination boasting a range of 1500 products from gourmet pantry food and drinks, fresh produce, frozen ready meals and gift packages.
It comes just seven months after CoLab merged with Melbourne rival ChefPrep.
The start-up continues to operate as the search for a new buyer is launched.
CoLab was backed by millionaire entrepreneur Mark Bouris and previously secured $3 million in funding from venture firms Artesian Ventures and Berlin-based Global Founders Capital.
The co-founders believe the business will find new life under new owners, despite failing to attract new investors in a recent funding round.
‘The business was in acquisition discussions with a number of businesses and EY was appointed as administrators to manage the sales process and to assess options for restructuring the business,’ the pair said.
‘We appointed EY as administrators when it became clear that we were unable to continue acquisition discussions on the current runway.’
‘We have been working closely with EY throughout the process and we are confident in their ability to achieve the best result for the business, employees and creditors.’
CoLab employed 16 staff with offices in Sydney and Melbourne.
Morgan Kelly and David Kennedy from EY have been appointed as the administrators.
‘Following stabilisation of the business, we are conducting an urgent expression of interest campaign to determine whether a strategic fit for CoLab can be identified,’ Ms Kelly said.
‘The current environment is challenging for start-ups, but the voluntary administration regime is designed to maximise the chances of a business continuing to exist.
‘We intend to explore all options for CoLab and its stakeholders, and will keep everyone informed as the administration progresses.’
The administrators are offering 30 per cent off the marketplace’s best sellers on CoLab’s website until April 11.
Established as Co-Lab Pantry in 2021, the start-up merged with ChefPrep the following year with big plans to expand nationally to other capital cites and regional areas
‘Born from a shared frustration of mass manufactured ready-made meals and food delivery services, we set out to shake up our industry,’ its website states.
‘This means never compromising on taste, quality, or convenience, while connecting our wider community to Australia’s most loved restaurants, cafes, growers and makers.
The Colab website states state the administrators have taken control of business affairs and assets, including proposals for an urgent recapitalisation.
‘At this stage, the Administrators intend to continue to trade the Group on a ‘business as usual’ basis,’ it states.
‘We thank you for your ongoing support.’
It follows a turbulent year for the struggling food delivery start-up sector with the demise of Send, Delivr, Deliveroo, and Voly, which resulted in the loss of hundreds of jobs.
Some of Australia’s biggest brands have also collapsed in recent months including fashion label Alice McCall, furniture retailer Brosa and online retailer EziBuy the latest the go into administration this week.
[ad_2]
Source link