Business Acquisition - United Petroleum buys Pie Face

The Pie Face Company was founded in 2003 by Wayne Homschek, a former banker, and Betty Fong, an interior designer. The business had enormous success in the first 10 years. The company apart from having over 80 stores across Australia was looking forward to expanding internationally including in Japan and the Philippines. Then trouble creeped in later in 2014, when they decided to not work with a reputable marketing agency in Australia This misfortune was attributed majorly to its ambitious chain store roll out theprogram. That roll out programled to huge debts running into millions accrued over the successive years. Because of the popular bakery’s financial problems, many staffs in acommercial kitchen, head office and franchise lost their jobs. Consequently, their volume of operationscondensed considerably.

TCA Global was the first financier who tried unproductively to shelter the food chain from collapsing. When it in the endit collapsed, Pie Face went into receivership in late 2016. The receivers and managers appointed were Liam Bailey (O’Brien Palmer) and Christopher Palmer.
In January this year, there was a communication from the Pie Face receivers that further 11 outlets which were making colossal losses had been closed and opened other stores in new areas. Additionally, most of the business processes were reported to have been improved, with clear supply and distribution agreements.

The underlying communication was that the company’s health had improved substantially and it was close to profitability again. This information as we can learn sounded like good music to the ears of potential buyers and investors. About 2 months ago, the Pie Face was bought by the unlikeliest of purchasers, United Petroleum buys Pie Face. The properties were acquired foran undisclosed sum and now it seems the food chains troubles will be a distant memory.

As per NGM Investment information, United Petroleum is an Australian independent fuel retailer which has over 400 outlets across the country.Ever since it was founded in the 1980s, it has witnessed immense growth over successive years.From the statements released by the company, it said that even though it was hoping to sell Pie Face products in its service outlets, it was not possible to release finer details of the buying plans immediately.

The Chief executive of United Petroleum, Gary Brinkworth, said there was "tremendous value" in the brand of Pie Face together with the potential for growth as an individual business. That was the main reason why the company ended up buying Pie Face. Additionally, Mr. Brinkworth said,” United(Petroleum) is financially strong”, which the company believes would go a long way in ensuring that Pie Face has a successful future. Furthermore the company hoped to use their many years of experience to run the new acquisition which was in line with their new strategy of diversification and expanding the customer base.

There are plans by the United Company to maintain the staff and the outlets it found with Pie Face. In its own thinking, this would provide the much needed level of continuity with the business. With that level of certainty provided under the purchase contract, United would benefit from the experience of staff and corporate knowledge.

For the time being while the sale of Pie Face has not been conclusively concluded, its Chief Executive Mr. Feodoroff will remain at the helm of the food chain. There was no communication on when the final deal would be announced but it is widely expected that that would be done soon enough. It’s also expected that any update regarding the various stakeholders will be issued the day the sale agreement is finalized. See more about our SEO essentials, Facebook marketing plan and Google Adwords tips.

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