MORE than 70 workers have been sacked without pay this week after Cowra's Windsor Farm Food factory, formerly the Edgell cannery, went into voluntary administration with millions of dollars worth of debts.
Key staff will be retained to finish existing contracts, but most staff will lose not only their jobs but possibly also worker entitlements as the business urgently tries to stop the company falling into liquidation.
Cowra Mayor Bill West said council was not informed of an administrator being appointed.
The closure also leaves many local growers out of pocket.
Administrator Grant Thornton Australia Limited's Trevor Pogroske told ABC news it can't afford to pay farmers contracted to grow vegies for the plant.
"Unfortunately, unless they have actually delivered the goods, even though there is a contract in place at the moment, they are not going to be reimbursed unless whoever is going to take over is going to keep to those orders."
A creditors meeting will be held at 2pm on Friday, March 22, in Cowra.
In a statement, Grant Thornton recovery and reorganisation partner Trevor Pogroske said Grant Thornton Australia had been appointed to all the companies in the group, which not only includes the Cowra canning facility but also the head office and warehouse in Arndell Park, outside Sydney.
"Unfortunately, it has been necessary to cease manufacturing and terminate the workforce without pay," Mr Pogroske said.
"However, a number of key staff will be retained in order to complete specific orders and to undertake certain financial reviews."
He said they were holding urgent discussions with interested parties regarding the sale of the business.
"In the meantime, we will be speaking with employees, union representatives, customers and suppliers."
Cannery's history
In 1943 the cannery produced canned peas, beans, tomatoes, carrots and beetroot, mostly grown on the 600-acre company farm. In the 1950s the factory housed the largest green bean canning line in the Southern Hemisphere.
In 1992 Pacific Dunlop closed the Cowra factory, leaving the infrastructure in place. Some equipment was moved to other locations owned by the parent company.
A group of local vegetable growers established a Co-operative (Cowra Export Packers Co-Operative limited) in 1993 and leased the factory from Pacific Dunlop. They processed canned asparagus, tomatoes and potatoes for the Edgell brand and generic products for supermarkets.
The Cowra Export Packers Pty Ltd (no longer a co-operative) purchased the factory in 1997 from Simplot Australia and continued its canned vegetable production under the Edgell brand as well as the "Cowra Gold" and "Lachlan Gold" brands.
Cowra Export Packers Limited was acquired by The Windsor Farm Foods Group Ltd in 2000.
