Aussie Farmers Direct to close after going into voluntary administration

Cornelia Mascio
Marzo 5, 2018

Food and grocery delivery service Aussie Farmers Direct has shut down, saying it can not compete in a market dominated by the major supermarkets.

Aussie Farmers Direct launched 13 years ago as a home delivery service for fresh milk, cheese, bread, and juice in Victoria.

"We do wonder if the franchisees were kept in the loop, too, because we had been receiving text messages from them right up until Saturday".

"We are simply no longer able to compete against the domination of the major two supermarkets and the influx of cheap imported produce".

The company said: "It is with great sadness that the directors of Aussie Farmers Direct advise of their decision to place the business into voluntary administration having made the assessment that the business is unable to continue operating".

According to Fairfax, the majority of Aussie Farmers Direct's more than 100 franchisees will cease trading today, however, a small number may be offered work with HDS.

According to Administrator Craig Shepard, the company had expanded to NSW, Queensland, WA, SA and the ACT, but struggled to compete with the major supermarkets and the promotion of low-priced imported products they sold.

However, the company's Home Delivery Services (HDS) business, which provides last-mile delivery services, will continue to trade as normal throughout the administration. Over the years we grew to be a full food delivery service to thousands of customers across Australia.

The grocery business had positioned itself away from the battle between Coles and Woolworths with a focus on exclusively local produce.

The company had expanded to NSW, Queensland, WA, SA and the ACT, but Mr Shepard said Aussie Farmers Direct had struggled to compete with the major supermarkets and the promotion of low-priced imported products they sold.

Shepard said in a statement that most of the company's debt was held with "entities associated with local and overseas investors", and that there was no significant bank debt.

A meeting of creditors will be called next week.

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