Health food brand Bounce Foods has gone into voluntary administration, with all staff stood down and administrators appointed. The company was founded in 2004 and had a failed launch into the US in 2016.
John McInerney and Philip Campbell-Wilson from Grant Thornton Australia have been appointed administrators.
McInerney said the company went into voluntary administration because of a heavy debt burden.
In 2014, company founders Andy and Paula Hannagan moved to the US to establish the brand in the American market. The launch in 2016 was unsuccessful and the project cost the company around $6 million.
“This heavy debt burden inhibited the company’s ability to access necessary working capital to fund its Australian operations,” McInerney said.
On LinkedIn, co-founder Andy Hannagan said he was saddened the company had entered VA due to “ongoing debt burden and trading conditions”.
“Life as an entrepreneur certainly throws you curve balls… This last month I feel like I've been flattened on the canvas. Everything on the line and trying to find our way through the weeds.
“This was a difficult decision, but it was the right one for the company at this time,” Hannagan said.
The Hannagans founded Bounce Foods’ parent company Natural High Co in 2004 and was regarded as an innovative brand in the growing health food, better-for-you channels.
Bounce has eight products in its range including Protein Balls, High Protein Bars, Protein Cookies, and Keto Bars. In 2022, it collaborated with Unilever’s Weis Bars for four fruit and cream flavour-filled tasty nut butter balls.
McInerney said Bounce Foods had a strong presence in the market with solid distribution channels through supermarkets, independent grocers, and convenience stores.
“An urgent expression of interest sale campaign has commenced by the administrator to find a buyer to take over the business and continue supply to customers.
“The founders, Paula and Andy Hannagan, are willing to support the brand, under the control of a purchaser, to ensure that it remains available to customers and reaches its full potential,” McInerney said.
Andy Hannagan said, “We remain committed to the legacy of Bounce Foods and are open to discussing how we can contribute and work with a new owner. We believe that our passion, energy, experience, and knowledge of the brand would be a valuable asset.
“We have no regrets about chasing global dreams, and we believe that the Bounce brand has the potential to be a major player in the global health and wellness market inside a new ecosystem.
“We are confident from the interest in the market, that a new owner will be able to take the brand to the next level.”
The first creditors meeting is on 26 July.
