The Bachelor Art Green’s Riot Foods falls into administration

Auckland Snack food company Riot Foods, co-founded by television personality Art Green, is in voluntary administration after damage to its factory left it desperate for cash.

Riot Foods, which owns the CleanPaleo and Poppy & Olive brands, was founded by Green, former Blackcap Mitchell McClenaghan and Ryan Kamins.

In early 2018 the company raised 1m in equity from a crowdfunding campaign involving 157 investors.

But in October the company revealed it was facing significant challenges after the alleged destruction of its Ascot Road facility by an unnamed “fumigation/sterilisation company” and so had missed its production date.

In a letter to shareholders Kamins, who was chief executive, said the company needed to raise a further $1m or the business may have to be sold.

“Although we have been working closely with several shareholders to help fund the business through this challenging time, Riot now finds itself in a tough position to turn things around with the Christmas/New Year period approaching,” he said at the time.

Issues with the factory had delayed its re-launch of its biltong and other Clean Paleo product ranges, along with its nut butter brand Poppy and Olive and Better Balls, into the Australian and Asian markets.

Kamins then resigned citing severe alcohol addiction.

Forensic accountants Iain McLennan and Peri Finnigan of McDonald Vague were appointed administrators on February 4, according to a notice on the Companies Office website.

A first meeting of creditors is due to be held on February 15 in Auckland.

The company last year signed a contract with supermarket chain Coles to distribute its biltong range to supermarkets throughout Australia. Its ranges were also supplied to 250 supermarkets in New Zealand.

Green, a shareholder who appears in the business’ adverts, is a former reality TV star who appeared in the first local season of The Bachelor NZ, a show where New Zealand women vied for his affection.

Source link Business News Australia

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