South Australian based food manufacturer entered voluntary administration in April 2013 with more than $3 million in debts, but just a couple of months later in July, the company's 300 creditors voted to accept a Deed of Company Arrangements to return 100 cents in the dollar on outstanding debts. The company was then returned to its directors.Strong community support boosted orders and sales throughout the administration process, and has continued to secure the future of the manufacturer, with Spring Gully today announcing repayments to unsecured creditors are on schedule and sales are running more than 20 percent above historic levels.
The company also announced that a new advisory board will be in place by the end of this month to guide the company’s growth; new machinery is being installed at the Dry Creek factory and arrangements are being made to export to China.
Spring Gully’s managing director, Kevin Webb, said new Spring Gully labels are currently being printed and will start to appear on supermarket shelves by the end of July.
“The new labels are eye-catching and modern, but retain enough characteristics of the old label to ensure they are readily identified on supermarket shelves,” he said.
“The new labels will be used on all Spring Gully branded products and will also be used on exports.”
Webb said community support has been instrumental in keeping Spring Gully afloat.
“We were initially worried about pantry fill and whether sales would fall once people had made their initial purchases, but this did not take place and people have kept on buying,” he said.
“We have now paid down 36 cents in every dollar owed to unsecured creditors and are on track to repay 100 cents in the dollar in line with the schedule agreed to at the second creditors meeting last year.”
He added that the company has also experienced a honey shortage due to dry conditions around the country, but volumes are expected to recover later this year and Spring Gully will introduce a new honey range later in 2014, with the Leabrook Farms label being retained as an export brand.
