Halo Foods (ASX:HLF) - Voluntary Administration

Halo Foods (ASX:HLF), a Sydney-based health food company, entered voluntary administration on 24 August. Founded in 2011, the company’s products include Tonik nutrition beverages, Key Dairy milk powders and Gran’s fudge. The company also has become a go-to contract manufacturer for health and wellness products in Australia and New Zealand, producing for many household brands and retailers. Despite record-high revenue of $82.1 million in its latest fiscal year, the company was loss making, and in May 2023 it commenced a strategic review process to explore divestment, M&A and other opportunities. The process did not deliver to expectations, however, and financial support to the company was withdrawn, necessitating the board’s decision to enter voluntary administration. Rahul Goyal, Kate Conneely and Michael Korda of KordaMentha were appointed joint administrators. The appointment was referred to them by the company’s chairman, who knew the firm from his involvement with a previous company that went into administration/liquidation in late 2018. Subsequent to the appointment of administrators, David Hardy, Ryan Eagle and Emily Seeckts of KPMG were appointed as receivers and managers on 25 August.