ASX-listed Kaddy Group has gone into voluntary administration, with Wexted Advisors appointed administrator. Wexted says it is looking to sell the business as a going concern or recapitalisation via a deed of company arrangement (DOCA).
Kaddy was a B2B technology platform, that provided beverage suppliers with an end-to-end supply chain solution. It had two divisions; Marketplace provided suppliers with the opportunity to connect with more buys as well as simplified back-office functions and gave buyers access to a wide range of products with streamlined administrative options.
The Fulfilment business offered warehousing, inventory management, and nationwide delivery services.
Wexted Advisors partner Rajiv Goyal told Food & Drink Business the Fulfilment business was unprofitable and has been shut down.
“The company leased six warehouses, five of those have been closed and the sixth will close by next week,” Goyal said.
The first creditors meeting has been held and 31 expressions of interest for buying its assets or DOCA have been received.
“There is real value in the Marketplace business, but it needs to be under a different ownership structure,” Goyal said.
Kaddy was founded by Mike Abbott and Rich Coombes. Abbott had been the co-founder of Uber in Australia, while Coombes founded Capital Brewing and Batlow Cider. In 2020, it completed a successful $3.5 million funding round with investors including KTM Ventures, SpringCapital and restaurant entrepreneur John Szangolies
In October 2021, WineDepot acquired the business for around $34 million. WineDepot’s parent company is ASX-listed Digital Wine Ventures (DW8).
Abbott joined the DW8 board and Coombes stayed on as head of Commercial. Abbott stepped down in March.
In November last year, the company announced it was pulling out of its B2C business and repositioning solely as a B2B provider. It had a new CEO Steve Voorma, who said the company was "generating good growth momentum" with Kaddy Marketplace.
"[Kaddy Marketplace] has significant scalability across the industry with a growing base of 3300 buyers and the 2800 brands it represents," Voorma said.
