The Queensland second tomato processor this year to go into administration has left 40 employees out of work.
Bundaberg tomato farm, Basacar Produce went into voluntary administration this week, following in the footsteps of the nearby SP Exports, which collapsed in February, blaming the high Australian dollar and the supermarket price wars.
The SP Exports farm was the biggest in Australia before it collapsed, leaving hundreds of people unemployed.
Basacar Produce’s directors, Ayhan and Zubeyde Basacar owe creditors including the Tax Office, the National Australia Bank and the farm’s employees more than $3.5 million.
The first meeting of creditors will be held 1 May and Vincents Chartered Accountants has been called in as the administrators.
Basacar Produce is hoping to save the tomato farm and one of the appointed administrators, Peter Dinoris, told SmartCompany the directors may put forward a deed of company arrangement as an alternative to liquidation.
“It will be up to creditors to vote at the second meeting of creditors,” Dinoris said.
“The three options are a liquidation, deed of arrangement or return the company to the directors.”