Associate Education Minister David Seymour on food provider Libelle Group going into liquidation. Video / Mark Mitchell
Pita Pit and Subway were runners-up for the revamped school lunch contract, but BusinessDesk understands they wouldn’t do it for less than $4, BusinessDesk reports.
Two sources confirmed the franchises put in a strong joint proposal, which was rejected in favour of the School Lunch Collective (SLC), a consortium includingthe Compass Group and Libelle.
The news of Libelle going into liquidation on Tuesday has raised concerns about the school lunch contract procurement process and whether the $3 price point per meal was achievable.
However, Associate Education Minister David Seymour, who led the funding cuts to the programme, told BusinessDesk on Tuesday that he still believed the budget was “adequate”.