Buyer found for Betta Foods; staff futures uncertain

After strong interest from investors, Betta Foods’ administrators Cor Cordis have found a buyer for the struggling company. The sale to Prydes Confectionery Holdings settled on Friday, 13 March.

According to The Sydney Morning Herald, the sale process attracted approximately 28 unique expressions of interest.

The remaining 95 Betta Foods staff will be made redundant, but may be employed by Prydes in the near future, according to Cor Cordis Managing Partner Bruno Secatore.

“Prydes will begin operating the business later this month under a new structure,” Secatore said.

“We have been in regular contact with the relevant unions. Obviously these manufacturing facilities require trained workers to operate and we understand Prydes will be interviewing the Betta Foods staff next week to see how they may employ going forward.”

According to Secatore, staff entitlements are protected under law and through the Fair Entitlements Guarantee (FEG) scheme. The taxpayer-funded FEG covers employee entitlements when a company lacks the funds to pay entitlements to terminated employees. According to SMH, employee entitlements make up approximately half of Betta Foods’ estimated $5-6 million debt.

Owned by Jose and Daniel Sanchez, Prydes is a NSW-based confectioner that has been in operation since 2009. This is the company’s fourth acquisition in five years.

The sale includes plant and equipment assets, intellectual property, business names, stock and rights of vendor under contracts with customers.

“We are pleased to be able to reach terms for purchase of the assets of Betta Foods, including its trademarks and business names,” said Secatore.

“This purchase shows there is a future for the Betta Foods brand and its product lines.”