UPDATE: Thirty-nine staff members have been made redundant at Broadmeadows confectionery maker Betta Foods.
Accounting firm Cor Cordis announced on Wednesday that a review of the business left administrators with no choice but to make a number of staff redundant.
Managing partner Bruno Secatore said a preliminary review showed that a restructure was needed for the business to continue operating as a going concern.
“Unfortunately that has meant that we have to reduce head count,” he said.
“Thirty-nine staff were informed of their redundancies today. This is always a very difficult decision when they’re trying to save a company. We have consulted with the unions and are dealing with this as compassionately as we can.”
Cor Cordis was appointed as the voluntary administrator of the manufacturer on January 20 when it was announced Betta Foods had collapsed financially.
Betta Foods manufactures Capricorn liquorice and Eskimo chocolate snowballs and counts Coles, Woolworths and Aldi among its distributors.
The King William Street-based business was sold to British restructuring company Hilco Capital in October last year.
It was established in 1954 and was generating revenue of $40 million annually as of last year. Prior to Wednesday’s announcement, the company employed about 160 people.
Mr Secatore said “at this stage” there are no plans for further staff redundancies.
Of the 39 redundancies, 28 came from the factory floor and the rest from management.
Mr Sectaore said the business was likely to sell within the next few weeks.
Cor Cordis has received more than 26 expressions of interest since January 20, most from Australian-based companies looking to buy the company’s assets.
“We are expecting formal offers by the end of this week, and the signs are encouraging that there is a future for Betta Foods,” Mr Secatore said.
Union United Voice has been contacted for comment.
