Troubled Tasmanian yoghurt producer, Tamar Valley Dairy has been put on the market for urgent sale after attempts to save the family yoghurt business have failed.
The Victorian based dairy company Bulla, and Tasmanian Pure Foods both initially expressed an interest in purchasing Tamar Valley in April when owner Archie Matteo first announced the company’s debt of $9m, however both have since dropped the idea The Australian reports.
The company’s administrator, Deloitte, said that a significant reduction in sales and high pressures on margins were responsible for the company’s current financial position, in addition to costly product recalls, a lawsuit from dairy giant Fonterra and reduced orders from Coles for its home brand yoghurts.
It is unclear as to whether the sale of the business will include the 10 year supply contract that the company has with Coles, however the supermarket said that it would be doing all it could “to help the business through this difficult time.”
"We are in touch with the management and the administrators to understand how we can best work with them," a Coles statement said.
Administrator, Glen Kanevsky said that the industry as a whole is ‘extremely competitive’.
"We are currently examining the trading position of the business and will be working closely with all key stakeholders to allow the business to continue to operate as normal," Kanevsky said.
Tamar Valley Dairy currently employees 170 jobs in Tasmania, and unions are believed to have appealed to the Tasmanian government to ensure that the company survives.