Rosella jobs on the line

04 Dec, 2012 07:22 AM
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5
 

ABOUT 275 jobs are on the line after owners of Australia's 100-year-old tomato sauce brand Rosella was placed in receivership on Monday, owing millions to the National Australia Bank.

Fairfax understands Gourmet Food Holdings, which employs 140 people at its factory in Dandenong and 110 in NSW, could owe NAB as much as $50 million.

The collapse puts more pressure on Victoria's manufacturing industry, which has seen a number of high-profile companies cut jobs as a result of the strong Australian dollar.

Ferrier Hodgson partners Steve Sherman, Jim Sarantinos and John Lindholm were appointed receivers after creditors failed to find a buyer for the business. The company went into voluntary administration on Friday.

A Ferrier Hodgson spokesman said it was ''too early'' to to comment on any job losses. ''We're going to do what we can to preserve jobs.''

NSW secretary for the Australian Manufacturing Workers Union, Tim Ayres, said it was hard to remain optimistic despite assurances that the whole business would be put on the market. ''We're very worried that, with no notice, an administrator has been appointed,'' he said. ''In the lead-up to Christmas, every worker is going to be concerned.''

In a statement, the receivers said an expressions-of-interest campaign would be launched to find a buyer for the group.

The company is ultimately owned by private equity firm Crescent Capital, which also owned failed music company Allans Billy Hyde.

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READER COMMENTS

Percy
4/12/2012 8:09:30 AM

Whoops there goes another Australian icon. Not much left now so hopefully the liberals will have a look at just why during their study into foreign investment in Agricultural industries.
RUNT66
4/12/2012 8:56:09 AM

IS THE BIG ROSELLA FACTORY IN ADELAIDE STILL OPEN ???
genazzano
4/12/2012 9:11:48 AM

Histoy has shown an PRIVATE EQUITY FIRM is a receipt for failure
Tigerdicky
4/12/2012 11:15:31 AM

A sad story!
Ian Mott
4/12/2012 11:20:05 AM

A classic example where the union would rather watch the whole factory close rather than allow wage flexibility to keep it afloat. Replace just 30% of that workforce with low wage guest workers and the other 195 aussies would still have a viable job. Workers all over the world would jump at the chance for a 12 month contract on $5/hour and each one of them would save the company $20,000 a year, adding $1.6 million to their bottom line and either service their debt or pay $550,000 in company tax. But try telling a union neandethal that loss making companies don't pay tax.

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