Meat suppliers are owed an estimated $10 million by failed Victorian big-box butcher Tasman Market Fresh Meats.
Victoria’s largest retail butcher entered voluntary administration last week, announcing retail concerns at its 17 stores throughout Melbourne.
Administrator PricewaterhouseCoopers revealed the debt at the first meeting of creditors in Melbourne yesterday morning.
Creditors represented at the meeting include Westside Meats, Bacchus Marsh and Gathercoles, which has abattoirs at Wangaratta and Patterson Lakes, as well smaller meat and grocery suppliers.
Some creditors are believed to be owed hundreds of thousands of dollars, but none were prepared to speak after the meeting.
PwC administrator David McEvoy said those owed most money were product suppliers.
“The business was trying to restructure for some time but didn’t have the balance sheet and capital base to fund it,” Mr McEvoy said.
“It was trying to fix that.
“It had a very supportive bank, which was prepared to do its part, but they needed capital to restructure and exit under performing stores.”
Mr McEvoy said “elements of the network just weren’t working”.
“Once you take away the under performing stores, it’s a very good network of stores.”
Two of the Tasman Meats’ stores at Bendigo and Rosebud, were closed in the past week.
“I think, with some capital behind it – to implement some operational improvements and potentially invest some money in rebranding and uplifting the stores - it can perform very well,” Mr McEvoy said.
He said a preferred bidder for 10 to 11 of the stores had been identified.
“We have interested parties, looking at individual stores, so we are going to try and get all 15 sold, if we can.”
He said PwC was hoping the sale could be be finalised in the next two to four weeks.
“To have the company in adminstration too long is not good for business,” he said.
Tasman Butchers is majority-owned by a Singapore-based private equity firm.
