Spring Gully's comeback complete
Local
More than four years after being saved by South Australians, a local food company has paid off its debts.
Spring Gully Foods went into administration in 2013 owing close to $5 million but was saved by a grassroots campaign to buy SA products
The company has dispatched its final repayments to unsecured creditors, with managing director Kevin Webb saying he’s both “proud and humble” to complete the comeback.
“It means Spring Gully can look to the future with confidence,” Webb said in a statement.
“We are already looking at new products and have long-term plans to further modernise and expand our factory.”
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The family-owned company started in 1946 produces condiments including pickled foods and jam.
Its plight became a rallying cry for the wider industry after the company made a plea for consumers to buy local products.
Webb said the company was overwhelmed by the public response and had to put on a second shift at some stages to keep up with demand.
In July 2013, the company entered into a Deed of Company Arrangement, agreeing to repay its creditors in full while continuing normal trade.
The notice to discharge Spring Gully from the deed is being lodged with ASIC today.
Spring Gully has repaid debtors 102 cents in the dollar.
“The extra two cents in the dollar was partially to thank them for their support and also for agreeing to changes to the original repayment schedule,” Webb said.
In 2013, InDaily detailed how Spring Gully was three days from going under, and how the community rallied to save it.
Read the full story here.
– with AAP
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