Potential buyers of grocery retailer Supie are unlikely to continue operating the business as it was before. Last month, Supie, along with its sister companies Workerly and Bevie, went into voluntary administration and liquidation. The combined final administrator’s report, released recently, revealed a total of $4.3 million in creditor claims, including employee claims. Richard Nacey and Stephen White from PwC were appointed as administrators for the three businesses.
According to Nacey, it is not expected that any buyer will continue running the business in its current state. Creditors have claimed $2.03 million from Supie, while Workerly and Bevie face claims of $1.31 million and $57,000, respectively. In total, there are $4.3 million in creditor claims. The administration process incurred professional fees totaling $132,210, with Supie’s fees at $113,176, Workerly’s at $12,700, and Bevie’s at $6,345.
Despite an anonymous donation of $150,000 to pay workers, the administrators’ report found that it was not enough to cover all the employee claims. A total of $267,000 is owed to the 118 employees Supie had at the time of administration. The identity of the donor remains undisclosed.
The first liquidator’s report, released last month, stated that Supie faced challenges in a highly competitive sector and entered voluntary administration due to a lack of sales volume and an inability to scale the business profitably. The report also noted that despite efforts to attract investment capital for growth, the required level of investment could not be secured, leading to the business’s inability to continue operating.
The list of creditors includes prominent names such as NZ Post, Foodstuffs and Woolworths, Z Energy, New Zealand King Salmon, Allpress Espresso, Trade Aid Importers, NZME, Facebook New Zealand, the New Zealand Sugar Company, Kellogg’s, and Coca-Cola Amatil. Warehouse Stationery, Heinz Wattie’s, and Fonterra are among the other creditors.
Former Supie investors, David Oliver and Ben Kepes, recently spoke out about the failed business. Kepes mentioned that reaching a point where they could compete with major supermarket chains would require a significant investment of a couple hundred million dollars. They had hoped to reach a break-even point with the capital they had raised and explore further options. Oliver, on the other hand, stated that he only invested as a show of support and disagreed with the strategy of directly competing with established retail giants for everyday items.
The collapse of Supie and its subsequent liquidation paints a challenging picture for potential buyers, who are unlikely to continue the operation of the grocery retailer. With substantial creditor claims and insufficient funds to cover employee entitlements, the future for Supie remains uncertain.
