A spokesman for leading Australian retailer Woolworths has insisted there will be “no disruption” to the supply of fresh potatoes after the country’s largest supplier, Oakville Produce, entered administration.
Consultancy firm Deloitte has been appointed to oversee the sale of Oakville, after the company’s major creditor, Commonwealth Bank, put it into receivership on May 11.
Oakville, formally known as MoraitisGroup, supplies around three-quarters of all the potatoes sold in Woolworthsstores, according to the Sydney Morning Herald. The Woolworths spokesperson said the predicament would not lead to a shortage of potatoes or onions, Oakville’s other key line, with the supermarket chain remaining in close contact with the sale’s receivers and managers.
Fellow retail giant Coles said the move would have no impact on its supply volumes, as only one per cent of Oakville’s sales are generated through its stores.
The push into administration comes after a turbulent few years for Oakville. Hong Kong-based conglomerate Chevalier International Holdings acquired a 70 per cent stake in the Moraitis Group in 2013, in a transaction worth an estimatedUS$219m. The sale came after Moraitis announced it had made a A$36m profit in the nine months ending 30 June 2013.
In a surprising development, Moraitis chief executive Jeff Jackson announced his resignation in mid 2014, less than a year after the Chevalier acquisition was finalised.
The company was rebranded Oakville Produce in June 2015, as it moved towards a “vertically integrated business model.”
Earlier this year, Oakville announced it had sold its banana division to the newly established Nutrano Produce Group.
The Sydney Morning Herald said the company had struggled with high debt levels after investments in infrastructureand profits had steadily declined.
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