PIE FACE LIQUIDATION
The following is a case study concerns the liquidation of iconic Australian pie brand – Pie Face. On 31 October 2016, Pie Face’s primary funder TCA Global Credit Master Fund (“TCA”) appointed Christopher Palmer of O’Brien Palmer as Receiver & Manager of Pie Face Pty Ltd. The aim is to initiate a restructure of the Pie Face finances in order to strengthen the profitability and stability of the business.
This is not the first time that Pie Face have encountered financial difficulties. In 2014, the iconic Australian brand fell into voluntary administration. In early 2015, the business was restructured and came out of voluntary administration with approximately 50 stores. Out of the remaining 50 stores following this stint, only 28 outlets remained.
Following the Voluntary Administration, Pie Face entered into a Deed of Company Arrangement. However, following the recent turn of events, it is anticipated that the DOCA will likely be terminated.
Pie Face is expected to continue trading while Mr Palmer and his team work on restructuring its finances.
While their appointment only concerns Pie Face Pty Ltd, the O’Brien Palmer team believe that it may be extended to cover the two other entities of Pie Face
– Pie Face Holdings Pty Ltd and Pie Face Franchising Pty Ltd. If so, then the receivers will be organising a sale process for the group as a whole.
A new senior management team had been appointed to the business with Mr Bruce Feodoroff as the new Global Chief Executive Officer of all pir Face group entities. In addition, Mr Michael Craig was chosen to be the new Chief Financial Officer. The new senior management team, as well as the receivers, believe that the prospects for Pie Face, should the financial restructuring be successful, is hopeful.