The corporate owners of Australia’s biggest peanut supplier is shutting down the century-old business, putting 150 jobs at risk.
Bega will scale down Peanut Company of Australia’s Kingaroy and Tolga facilities in Queensland before they’re closed permanently in 18 months time.
The decision follows a 12-month strategic review and years of ongoing financial losses.
The peanut company was losing up to $10million a year.
‘Despite ongoing investments made by Bega Group into PCA’s operations, including significant upgrades to site safety and initiatives aimed at supporting local growers to boost production, Bega Group has not been able to establish a sustainable business model,’ a statement read.
Established in 1924 as the Peanut Marketing Board, the business was already struggling financially prior to Bega Group’s $11.9million acquisition in 2017.
Bega spent a year pursuing several options to sell the business.
‘Unfortunately, we’ve been unable to secure a buyer that could sustain a long-term future for employees and growers,’ Bega Group chief executive Peta Findlay said.
‘We understand the impact this decision will have.’
More to come.
