Taxpayers will foot the bill to pay the severance entitlements of 95 staff members made redundant in the handover of a Broadmeadows-based confectionary business.
Assets from King William Street confectionary manufacturer Betta Foods have been purchased for an undisclosed sum by New South Wales sweets maker Prydes.
But administrator Bruno Secatore, of Cor Cordis, said 13 administrative and 82 manufacturing staff would be made redundant. It closely follows the redundancies of 39 staff members last month – 28 from the factory floor and 11 from administration – following a Cor Cordis business review.
The company was put into administration in January, just three months after it was acquired by British buyout firm Re:Capital.
The transaction with Prydes, which includes all plant and equipment assets, intellectual property, business names, stock and contracts with vendors, was due to be settled on Friday.
Prydes owners Jose and Daniel Sanchez said the company was still planning its staffing requirements and “future team”.
“At this stage I can guarantee that all existing staff will be offered the opportunity to meet with us next week to discuss future employment opportunities,” Daniel Sanchez said.
Most staff made redundant are members of the United Voice union.
Jess Walsh, United Voice’s state secretary, said Prydes would offer jobs to 80-to-90 per cent of currently employed staff.
“As Betta Foods is set to be liquidated, our members will be able to access their redundancy entitlements and accrued leave via the federal government’s Fair Entitlement Guarantee scheme (FEG). Some people will lose their jobs. That is terrible news,” Ms Walsh said.
“But for most of our members this announcement gives them reason to feel cautious optimism.
“About 70 staff have a real chance of having a job going forward.”
The FEG scheme provides financial help to cover certain unpaid employment entitlements to eligible employees who lose their job because the employer went into liquidation or bankruptcy.
Mr Sanchez said the acquisition would over time provide further employment opportunities for the local community.
“The immediate focus is to stabilise the Betta business,” he said.
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