Beston Global Food Company and its subsidiary, Beston Pure Dairies, will undergo “an orderly wind down with milk production operations to cease from 6th December 2024”, its voluntary administrator, KPMG announced on 26 November.
KPMG Australia’s Tim Mableson, James Dampney, Gayle Dickerson, and David Kidman assumed day-to-day control of its operations in September, with the intention to continue trading while it assessed the business.
Several parties expressed interest in buying BGF as a going concern and KPMG provided additional time to some to finalise their terms, but ultimately no one could put forward a binding offer.
“Ultimately, the sales process has failed to secure a buyer in the time frame required given the trading losses being incurred,” it said.
Because of the “significant” weekly trading losses, the administrators could no longer fund the business beyond 30 November. Instead, it will organise a sale of its assets.
Before entering voluntary administration, BGF was in negotiations with Japanese company Megmilk Snow Brand Co to acquire its cheese and lactoferrin operations in Jervois, South Australia, but the deal collapsed.
A second meeting of creditors will be held in late January-early February to decide if BGF will go into liquidation or whether a deed of company arrangement could be accepted if it was proposed between now and the meeting.
