Foodora Australia appoints Worrells for voluntary administration

23rd August 2018 (Last Updated August 23rd, 2018 15:10)

Food delivery company Foodora Australia has appointed Worrells Solvency and Forensic Accountants for voluntary administration, effective immediately.

Foodora Australia appoints Worrells for voluntary administration
Credit: Tiia Monto.

Food delivery company Foodora Australia has appointed Worrells Solvency and Forensic Accountants for voluntary administration, effective immediately.

Simon Cathro and Ivan Glavas from Worrells Solvency will act as administrators for the company.

The voluntary administration process allows the company to be free from various challenges, including a statutory moratorium on claims against the company.

Delivery Hero, the parent company of Foodora, announced on 2 August that the company will exit four countries, including Australia, in a move to consolidate and focus on leadership positions in other markets.

Foodora has been operating its delivery service in Sydney, Melbourne and Brisbane since May 2015.

The delivery firm has been facing significant external challenges after it announced plans to exit Australia in an ‘orderly fashion’.

“The voluntary administration process allows the company to be free from various challenges, including a statutory moratorium on claims against the company.”

These challenges have impeded the company’s ability to implement a solvent wind down of its affairs.

The company claims that all payments due to Foodora’s creditors, in particular, its employees, partner restaurants and contract riders, have been met.

Foodora will update its creditors on the financial affairs of the company at a meeting scheduled to be held before 29 August.

The company is currently facing legal proceedings launched by the Fair Work Ombudsman for its alleged engagement in sham contracting activity that resulted in the underpayment of workers.

Last week, the Transport Workers’ Union criticised the Federal Government over inaction after legal cases against Foodora were stayed.

The union has also called for the commercial arrangement between Deliveroo and Foodora regarding the transfer of riders to be made public.