Bounce Foods, established in 2004 by Andy and Paula Hannagan, grew from a home garage operation into a multi-channel brand with a portfolio across grocery, convenience, pharmacy, health and online. Between 2012 and 2016 Bounce Foods expanded internationally, particularly in the US, UK, and Canada, leading to financial strain and a cashflow crisis in 2023.
Challenge
Despite strong sales in Australia, Bounce Foods suffered from poor financial control after retracting from overseas markets.
The crisis in June/July 2023 was worsened by a historical mismatch of payment terms with employees/suppliers and customers, leading to reliance on debtor finance secured against the directors' family home.
Solution
In July 2023, Grant Thornton was appointed as voluntary administrators to salvage the business and the family home. An urgent sale campaign was launched, including brand and asset sales. The process attracted significant interest, leading to 130 enquiries and several offers.
Grant Thornton negotiated over stock liens, secured key recipes, and managed financial and non-financial data for the sale
Outcome
The company's intellectual property and stock were sold to a major Australian company with global presence, a rare achievement in business administration sales. The sale prevented the forced sale of the directors' home and ensured repayment to the major bank. After the sale, the founders were retained post-sale, providing them with a steady income.
The success of this transaction led to Grant Thornton being appointed as external administrator to sell the business and assets of Nourish foods within one month after settling the sale of the Bounce transaction.
