Finest Food Products has been placed into receivership after a deal with a major customer fell through.
The company, which manufactures and sells food and milkshake syrup brands including Kapiti Kitchen, Supreme and The Goodness, was placed into receivership on January 10. Staples Rodway's Tony Maginness and Jared Booth havebeen appointed receivers.
The receivers continue to trade the business and are looking for a new owner to take over.
Staples Rodway receiver Tony Maginness said the company ran out of money after a deal it had made with a customer fell through.
"They had a major customer, who they signed a contract with, but the orders didn't come through fast enough and they had already committed to brand new premises and a whole lot of brand new machinery so they had a whole lot of costs and the sales just didn't come through as fast as they had budgeted for - the business ran out of money," Maginness said.
Finest Food, whose factory is located in Māngere Bridge, had received a high level of interest since last Thursday, Maginness said. The company employed 16 staff, with four retained to fulfill orders during receivership.
"There are a number of companies who have already contacted us and want to receive some information on it," he said.
"We expect to have at least two or three offers in the next couple of weeks."
The receivers are hoping for a positive outcome for creditors.
"There is demand for it so we expect to get a reasonable price for the business."
It was too early to know how much money creditors were owed, Maginness said.
Finest Food Products manufactures and supplies beverages, syrups and jams to major supermarkets and distributors both in New Zealand and Australia.
The company was majority owned by entrepreneur Andrew Brodie, who purchased the 35-year-old business in 2013 having previously sold Roasted Addiqtion Coffee for $4m in 2011.
The receivers will issue their first report to creditors in the next six weeks.
