The Lismore App reported today that Lismore’s health food shop Fundies Wholefood Market on Keen Street is under voluntary administration.

The store is one in a national chain of health food shops since it was taken over by the Natural Grocery Company about two and a half years ago.

However, the parent company has been under financial pressure and some of the stores have already closed down this year.

The Lismore store will remain open while appointed Voluntary Administrator Timothy Cook of Balance Insolvency manages the company through the administration process.

A statement from The Natural Grocery Company said “most of the stores in the chain are still operating”.

“They are Fundies Paddington and Lismore; Kunara Organic Wholefood Market; and Flannerys Benowa, Miami, Robina, Paradise Point, Loganholme, Wynnum, Chermside, Victoria Point, Maroochydore, Cronulla, Mona Vale, Gymea and Crows Nest,” the statement said.

“The Sydney stores in Bondi Junction and Lane Cove were closed, as was the one in Toowomba.

“The Board of The Natural Grocery Company has taken the difficult decision to put the Company into voluntary administration and appointed Mr Timothy Cook of Balance Insolvency as a Voluntary Administrator,” the statement said.

“Continued margin pressure and the broader distribution of health food channel products into the mass market retailers had severely impacted business performance.

“The Company instituted a comprehensive turnaround plan in early 2019, but despite the significant efforts of management, in-store teams and the Board, the plan failed to yield the required results.

“The Company and its directors are working closely with advisers on a Deed of Company Arrangement (DOCA) proposal to present to the Administrator to transition the business into a smaller and sustainable store network.

“Mr Fergus Collins has been appointed as acting chief executive to see the Company through the administration process. 

“Fergus is an experienced retailer having previously held the positions of chief executive for Metcash Grocery business and chief executive of Metcash Liquor business, Australian Liquor Marketers.

“Under the DOCA a large number of the employees will continue with the business and all employee entitlements will be paid in full and the company’s creditors are anticipated to receive a significant dividend,” the statement said.

Lismore Fundies manager Drew Pilbeam said “Fundies is still open and trading as normal and the plan is for us to eventually take back control of the business.”

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