Simplot Australia has reportedly emerged as a front runner in the bid to buy the Black Swan, seven months after going into receivership.
Expressions of interest to buy the business closed last week and The Australian reports that Simplot Australia is the leading interest party and that the Black Swan could go for as much as $50 million.
Simplot Australia is a leading Australian food manufacturer with brands such as Leggos, Birds Eye, Lean Cuisine and John West.
According to Smart Company, other big businesses rumoured to have expressed interest include Fonterra, Parmalat and Murray Goulburn.
Deloitte was appointed as administrators to Black Swan by the Family Court of Australia following a dispute involving the chief of the company.
Last year, Simplot Australia received a government grant of $500,000 for capital upgrades after nearly closing its Tasmanian Devonport plant. The company said the plant will remain in operation at least until 2016 to fulfil contracts with Coles and Woolworths. It said there would still need to be significant savings or it will potentially face closure by 2019, and that the processor’s casual workforce would experience significant job cuts.
Simplot’s Bathurst plant has also been experiencing difficulties, with the company announcing last year that the plant was under threat of closure due to a very competitive industry and unsustainably high costs.