LEGAL | Staff Reporter, Australia

foodora enters into voluntary administration

The food delivery company said the move will give them "essential breathing space."

Foodora has gone into voluntary administration, weeks after announcing that it would cease its operations on August 20.

The company said it had planned to wind down its affairs in Australia in "an orderly fashion and with the support of its parent company [Delivery Hero] to meet all known liabilities" but was faced with "significant external challenges" that reportedly prevented them from implementing a solvent wind-down.

"The voluntary administration process offers the company essential breathing space, including a statutory moratorium on claims against the company, with a view to ensuring that the affairs of Foodora are administered in a way which results in a better return for creditors of Foodora than would result from its immediate liquidation," Shelley Borstein of administrators Worrells Solvency and Forensic Accountants said in a statement.

Worrells Solvency and Forensic Accountants' Simon Cathro and Ivan Glavas have since been appointed as administrators.

In a previous statement, foodora said that its decision to leave the Australian market was due to "a shift in focus towards other markets where the company currently sees a higher potential for growth."

The company currently operates in Austria, Canada, France, Germany, Italy, the Netherlands, Norway and Sweden.

(Photo credit: foodora Australia Facebook page)

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