The receivers handling the Kailis Organic Olive Groves have secured a deal with Australia’s largest supermarket chain in the final weeks before formal bids for the company’s assets are sealed.
Woolworths has agreed to stock the failed company’s organic extra virgin olive oil as part of its private label “Macro Wholefoods Market” range.
According to a report in Financial Review, up to 40 prospective buyers have sifted through the books of Kailis Organic, including at least one American firm. The price will likely be in the $20 million range.
The assets include 3,900 hectares of freehold land, 1,800 hectares of olive plantations, two processing facilities, long-term water licenses, storage facilities, plants and equipment.
Meanwhile, Peter Kailis, the founder of the Red Rooster restaurant chain and the father of the olive oil company’s founder, Mark Kailis, is seeking in the case of a sale $1 million he lent the business. But before he’s repaid there’s a claim of reportedly up to $20 million made by creditor Westpac Banking Corporation.
The sale’s timing couldn’t be much worse as the global olive oil crisis grinds on with prices paid to producers skidding along historic lows.
The receivers are seeking to sell the company before this year’s April olive harvest.