Food-delivery start-ups Milkrun and CoLab collapse into administration
Wesfarmers sells the last of its Coles Group stake
Authentic Brands snaps up Surf Drive ‘ n ’ Ski chain , other Aussie brands
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Food-delivery start-ups Milkrun and CoLab collapse into administration
Grocery and meal-delivery start-ups Milkrun and CoLab have abruptly collapsed , culling hundreds of jobs as administrators work to sell off their assets .
Milkrun founder Dany Milham informed staff in an email that the business would cease operations as “ economic and capital market conditions have continued to deteriorate ”.
The Sydney-based grocery-delivery company grew popular during the Covid-19 pandemic , delivering around 2000 common grocery items across 35 suburbs in 10 minutes or less , using e-bikes or bicycles .
Last January , it raised $ 75 million in seed funding from investors , setting plans to expand into Melbourne ; however , with the return of in-store shopping , the business struggled to keep its operations afloat .
Milham added that this decision would help the company pay severance packages to its staff and delivery drivers , who will be made redundant .
CoLab was created in August last year after CoLab Pantry was bought by Australian gourmet ready-meal delivery start-up ChefPrep . At the time of the deal , ChefPrep co-founders Elle Curran and Josh Abulafia promised the merged venture would become the “ Amazon for food ”.
The company appointed Morgan Kelly and David Kennedy of Ernst & Young as joint administrators , who will oversee the “ recapitalisation of the group ” or the purchase of its business and assets .
“ We want to focus on speed , to help the staff find a new job and transition as quickly as possible . Elle Curran and I will provide a more comprehensive update and a reflection on our journey ,” Abulafia said .
ChefPrep ’ s acquisition of CoLab Pantry was made possible by a successful $ 3 million seed funding round in April last year , led by Artesian Ventures and American venture capital firm Global Founders Capital .
Wesfarmers sells the last of its Coles Group stake
Wesfarmers has sold all of its remaining shares in the supermarket chain Coles Group , which it spun off in 2018 .
“ Since the demerger of Coles from Wesfarmers in November 2018 , Wesfarmers has gradually reduced its shareholding in Coles ,” the company said in a statement in April .
Reuters has reported that the deal ’ s value is estimated at $ 688 million , or $ 18.50 per share . Both groups will retain a 50 per cent interest in Flybuys .
The spinoff and associated IPO resulted in Coles operating as an independent company .
In February , Coles reported a 17.1 per cent lift in tax-paid profit in its first-half results , despite macroeconomic challenges .
US-headquartered brand management company Authentic Brands Group has made a binding offer to acquire sports and lifestyle company Boardriders – including Australia ’ s 80-strong Surf Dive ‘ n ’ Ski chain of stores .
Boardriders designs , produces and distributes branded apparel , accessories and footwear for boardriders globally ; its portfolio includes Quiksilver , Billabong , Roxy , DC Shoes , RVCA , Element , VonZipper and Honolua .
Jamie Salter , the founder , chair and CEO of Authentic Brands Group , said the acquisition would help “ accelerate and expand ” Boardriders ’ branded retail
Authentic Brands snaps up Surf Drive ‘ n ’ Ski chain , other Aussie brands
stores , wholesale and e-commerce network worldwide .
“ Along with the great brands and impressive global reach that will come with this acquisition , we see Boardriders ’ potential as a thriving online marketplace under Authentic ’ s ownership .”
The deal is subject to the consultation of certain Boardriders employee representatives and is expected to be finalised in the third quarter of this year . Salter said that as an early believer in the global and commercial appeal of action sports , the acquisition takes him back to the roots of his early career .
10 | www . insideretail . com . au May 2023