Spring Gully Foods no longer in a pickle

Spring Gully Foods is back under family control after several months under the administration of Meertens. The company’s 300 creditors voted to accept a deed of company arrangements (DoCA) which will return them 100 cents in the dollar on outstanding debts.

Director Kevin Webb said he is humbled and grateful for the support of creditors, the public and major supermarket chains which rallied behind the company after it entered voluntary administration in April.

“The support and goodwill we received from everyone has been overwhelming,” Webb said. “As soon as our situation became public, demand for our product went through the roof, resulting in us introducing a second shift in May to deal with the extra demand.

“This increased level of sales has been maintained and we are confident that together with the changes we have made internally, we now have a positive long-term future.”

“Any administration that results in creditors betting 100 cents in the dollar and the company being returned to its directors is a good result,” said Austin Taylor, the administrator.

“This was without a doubt one of the most unusual administrations I have been involved in given the high level of public support and involvement. It also underlines that administration need not be a one-way journey to liquidation, providing administrators are called in early enough.”