foodora Australia Pty Ltd have appointed Simon Cathro and Ivan Glavas of Worrells Solvency and Forensic Accountants as voluntary administrators, effective immediately.
Earlier this month, foodora’s parent company, Delivery Hero sent shock-waves through the food retailing industry, announcing it would be exiting four countries, including Australia to consolidate and focus on leadership positions in other markets.
The decision came amid speculation of misconduct, with Foodora announcing it would be fighting accusations put forward at the Fair Work Commission launched by the Transport Workers Union on behalf of delivery rider, Josh Klooger.
foodora’s intention had been to meet all known liabilities, focusing on winding down Australian operations in an orderly fashion with the support of its parent company.
The company, which has operated in Australia since 2015 has faced significant external challenges however, impeding its ability to implement a solvent wind down of its affairs.
Shelley Bornstein, practitioner’s liaison manager at Worrell’s Solvency and Forensic Accountants said the integration of Cathro and Glavas as administrators provided foodora with an alternative to immediate liquidation.
“The voluntary administration process offers the company essential breathing space, including a statutory moratorium on claims against the company, with a view to ensuring that the affairs of foodora are administered in a way which results in a better return for creditors of foodora than would result from its immediate liquidation,” Bornstein said.
“foodora wishes to acknowledge the support of its employees, partner restaurants and contract riders over the last three years. To the best of its knowledge, all payments due to foodora’s creditors, in particular, its employees, partner restaurants and contract riders, have been met.”
Creditors will be updated on the financial affairs of the company at first meeting of creditors, which is due to be held not before 29 August 2018.
More to come.