Online grocery retailer Aussie Farmers Direct has entered voluntary administration.
The company, which began delivering fresh fruit, vegetables, meat, bread and dairy to customers in 2005, appointed restructuring firm KordaMentha this morning.
Aussie Farmers Direct failed in recent attempts to recapitalise its business, while a suitor could not be found to buy the company.
“Unfortunately, it is not possible to continue trading and the business will stop operating immediately,” KordaMentha administrator Craig Shepard said.
Within five years of its establishment, Aussie Farmers Direct was named the fastest growing franchise in Australia. However, Shepard said the company had struggled to compete with country’s major supermarkets over more recent times.
He said most of the company's debt is held by entities associated with local and overseas investors and there is no significant bank debt.
More than 100 franchisees will cease trading immediately, with over 250 employees out of work.