Tamar Valley Dairy seeks catch up on its Coles match up

  • May 1, 2013
  • Sophie Langley

Creditors have decided to allow Northern Tasmanian dairy company Tamar Valley Dairy (Tamar) to continue trading, despite the Company reportedly owing up to $9 million.

Sydney-based accountants Lawler Partners met with creditors in Launceston last Friday to ask for up to four months of “breathing space” for Tamar.

Tamar moved to a new $20 million factory last year, and secured a 10 year-supply contract with Coles.

The Company’s Managing Director, Archie Matteo, told The Australian that the Company’s financial troubles were a “short-term liquidity problem” caused by a six-month delay in getting its new factory finished. The delay meant Tamar had not been able to fill the Coles contract.

The Company, which is a family-operated company, was also reportedly fielding offers of up to $8 million from other Australian food companies to help it overcome its debts.

Victorian dairy company Bulla was reported to be among the companies offering to take an equity stake in Tamar. Tamar was also reported to be considering an offer from another unnamed Tasmanian dairy company.

 

Tamar Valley dairy given time to pay creditors


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One Response to “Tamar Valley Dairy seeks catch up on its Coles match up”

  1. Sue Duncan on May 2nd, 2013 11:19 am

    This is another example of the power of the retailers demanding prices that were are unsustainable from businesses to supply their private label. And the ACCC could not devise a code of conduct even though they had cases of anti-competitive behaviour. All retailers do this – including Aldi. Foreign own companies simply close their doors and go off shore. The Australian Concumer and Competition Commission deals with the end user and seller and does nothing to support the growers and the manufacturers. Without our wealth creators we do not have an economy and are just net importers. Exacerbated by our open door policy to imports and the For Sale sign on our assets. Our greatest disability as a nation is not our people but politicians and their advisers.

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