Over 100 expressions of interest for Rosella company

Employees of the ailing Gourmet Group company may yet keep their jobs. Receiver Ferrier Hodgson (FH) has reportedly received more than 100 expressions of interest from potential buyers looking to purchase part or all of the company, which includes brands such as Rosella, Aristocrat and Waterthins.

“A sale is the key to the long-term future of the business,” said FH partner Jim Sarantinos. “Given the level of interest in the business amongst potential buyers, I have an increasing degree of confidence that the group has a future.”

This news may be welcomed by other food processors, particularly after industry groups such as AUSVEG expressed “deep concern” over the announcement that the group had been placed into receivership.

“The loss of yet another food processor could have large ramifications for the Australian food production sector, which is already struggling as a result of the high Australian dollar and cheap processed food products being imported from overseas,” said AUSVEG spokesperson Hugh Gurney.

“The food processing industry employs around a quarter of a million people in this country, so to see iconic Australian brands like Rosella entering into voluntary administration is very concerning, not just for Australian vegetable and potato growers but for the entire economy.”

Sarantinos said all employee entitlements are likely to be paid in full, which should provide employees with a degree of confidence going into the Christmas period.