UPDATE (25/5): On May 22, Kaddy announced that Kaddy Marketplace has been "Reborn" following a deal with the Singapore-based food and beverage distribution, logistics and e-commerce business, Lecca. Although the $550,000 purchase means Marketplace will now operate as a separate entity, the fulfilment and logistics side of the business is being wound down and remains under administration with a meeting of creditors set to be held on June 8. The media release is available below.
Kaddy, an online marketplace connecting Australian drinks producers with retailers and venues, has gone into voluntary administration. The news comes in the same week that online retailer BoozeBud entered administration too.
The announcement was made to the ASX today (May 5) via a statement which says: "The Administrators are undertaking an urgent assessment of the Kaddy Group and will be looking to sell the business as a going concern or recapitalisation via a Deed of Company Arrangement (DOCA).
"The Administrators intend to work with management, employees, suppliers and customers to stabilise operations and seek the best outcome for the business."
Kaddy was launched in 2019 by school mates Rich Coombes and Mike Abbott with the aim of simplifying the ordering and payment process for buyers and sellers in the local booze world. It went national in 2021 before being acquired by WineDepot that same year. Both brewers and retailers using Kaddy that The Crafty Pint has spoken to over the years have praised the service.
Kaddy's share price had been tumbling for some time, down from an all-time high of more than $4 in 2021 to less than three cents by February this year. It had entered a trading halt that month, announcing a voluntary suspension from trading on February 28, "pending the release of an announcement in relation to a capital raising." That suspension was extended multiple times ahead of today's announcement.
Since then, there have been changes at the top of the company, with both Mike and Rich resigning from the business in recent months.
The news continues what's been a highly turbulent year for the local beer and wider drinks industry. Ballistic Beer Co entered voluntary administration in January before being acquired by a consortium led by Catchment Brewing, Tribe Brewing soon followed a similar path, and Parched Brewery in Brisbane's West End entered voluntary administration on March 30, seeking to sell.
The impact of today's announcement by Kaddy remains to be seen, but on the back of BoozeBud's announcement this week it potentially removes a route to market for many of the country's brewers, adding to the challenges in what's already been a tough year.
A first statutory meeting of Kaddy's creditors is expected to take place on Tuesday, 16 May 2023.
MAY 22 ANNOUNCEMENT: Kaddy Marketplace is BACK IN BUSINESS!
Two weeks after parent company Kaddy Group entered voluntary administration, Kaddy Marketplace is pleased to announce that it will be reborn under a comprehensive business initiative known as “KADDY REBORN“.
Led by the CEO of Kaddy Limited, Steve Voorma and Singapore-based Lecca Group Pte. Ltd. (“Lecca“), Kaddy Marketplace now offers a simpler business model, a new management team, a more comprehensive range of products, more competitive pricing and improved application features for its suppliers and customers.
Kaddy Marketplace will actively draw upon Lecca’s strengths in food and beverage to continue with its ambition of disrupting Australia’s alcohol wholesale and distribution market. A new business model, where customers can access a broader range of high-volume products at more competitive pricing, will lead this evolution. As a result, what is already an unrivalled product range will now include market-best deals on globally recognised brands like Corona, Budweiser, Peroni, Smirnoff, Absolut, Hendrick’s, Grey Goose, Gordon’s, Bombay Sapphire, Jim Beam and Jameson whisky.
With these enhancements, Kaddy Marketplace will offer a complete suite of craft and fast-moving beverages and become a genuine one-stop replenishment and shopping destination for its customers.
To further enhance its supply capabilities, bottle shops and other retailers will soon be able to participate as suppliers on Marketplace to service on-premise customers. Offering complete flexibility, users can house their goods in their own or third-party warehouses contracted by Kaddy Marketplace. Selected customers will also be entitled to one of the longest credit terms in the market of up to 60 days. In addition, with improved and integrated customer relationship management and point-of-sale systems, customers can expect a positive and seamless experience from order to delivery with the highest availability.
Who is Lecca?
Lecca is a regional investment holding company focusing on food and beverage, distribution, logistics, reimagined retail and e-commerce. Its online alcohol delivery business, Cellarbration, is a market leader in Singapore with multiple outlets across on and off-premise, all selling an expansive range of wines, spirits, whiskies and beers.
Steve Voorma, CEO of Kaddy Marketplace, said, ‘Our partnership with Lecca to relaunch Kaddy Marketplace fills us with both confidence and excitement. We have actively listened to the market and implemented a range of initiatives to enhance our offerings. With Lecca’s expertise, support and funding, we have significantly strengthened our market position. This collaboration, coupled with our new simplified yet enhanced business model, will enable us to deliver an unparalleled market offering, setting the industry standard for both suppliers and buyers.’
This press release is provided by Kaddy Marketplace only and does not represent Kaddy Limited, which remains under administration.
May 4 ASX ANNOUNCEMENT: Appointment of Voluntary Administrators to the Kaddy Group
On 4 May 2023 to appoint Rajiv Goyal, Chris Johnson, and Joseph Hayes of Wexted Advisors as Voluntary Administrators (Administrators) of the entities within the Kaddy Group pursuant to section 436A of the Corporations Act 2001 (Cth).
The Administrators are undertaking an urgent assessment of the Kaddy Group and will be looking to sell the business as a going concern or recapitalisation via a Deed of Company Arrangement (DOCA).
The Administrators intend to work with management, employees, suppliers and customers to stabilise operations and seek the best outcome for the business.
Further updates will be provided in due course.
First statutory meeting of creditors
A first statutory meetings of creditors must be held within eight business days after the administrations begins and are expected to take place on Tuesday, 16 May 2023.
A meeting notice setting out the time and location for the first meetings of creditors will be distributed to the Kaddy Group creditors over the coming days.