Pie Face Group undergoes restructure
The shakeup aims to enhance the stability and profitability of the business.
On 31 October 2016, Christopher Palmer of O'Brien Palmer was appointed as Receiver & Manager of Pie Face Pty Ltd ("the Company") by its primary funder, TCA Global Credit Master Fund ("TCA"). The appointment was preceeded by the apointment of Mr Palmer as Investigating Accountant to the Pie Face group of companies by TCA. As a result of Mr Palmer's preliminary investigation, it became evident that although the Pie Face business has potential, a restructure of the business had become necessary in order to resolve issues pertaining to excessive overhead costs that the business could no longer support.
There are no current plans to make appointments to any of the other Pie Face entities unless required to implement the restructure strategy developed by Mr Palmer in conjunction with other key stakeholders. The operations of the other entitites in the group will be unaffected by the appointment. The business of the Company will continue to trade whilst working constructively with Mr Palmer and his team to enhance the prospects of the business of the Group.
It is likely that the company, which remains subject to a Deed of Company Arrangement ("DOCA") subsequent to a previous voluntary administraiton process, will shortly be wound up and the DOCA terminated. This outcome will not prevent the business of the Company trading under the control of the Receiver, although it has become necessary to close a small number of loss making retail outlets. A public tender process for the business of the Pie Face group will likely be announced within the next week.
On 10 October 2016, Mr Bruce Feodoroff was appointed as Global Chief Exceutive Officer of all of the Pie Face group entities, to oversee and manage the Pie Face business. On 17 October 2016, Mr Michael Craig was appointed as the new CFO of the group. The new senior management team intends to continue to grow the business, both within Australia and internationally, and has expressed confident in the future prospects of the business if a restructure can be successfully implemented.
Creditors who are owed monies by the Company for the period prior to the appointment of Mr Palmer as Receiver may contact Jirsch Sutherland to register their claims against the Company.
