Dessert brand Sara Lee collapses into administration, continues operations
An image of Sara Lee's pound cake and cheesecake products. The company has collapsed into voluntary administration. (Photo: Instagram/Sara Lee)
Australia-based dessert brand Sara Lee - best known for its sweet treats like cheesecakes, ice cream and pound cakes - has gone into voluntary administration, Australian media outlets reported on Wednesday (Oct 18).
This means the company is in financial trouble, and an external administrator has been brought in to look into the company's affairs to recommend the next steps.
The 52-year-old brand is now seeking to restructure or sell its business while continuing its operations.
“We are working with Sara Lee’s management team and staff to continue operations while we secure the future of the business,” the appointed administrator FTI Consulting said in a statement on Wednesday.
“We expect a lot of interest in the business and will work with those parties and stakeholders to achieve an outcome as soon as possible to secure the ongoing business and provide clarity to its loyal and committed staff and customers,” it added.
WHO IS SARA LEE?
The dessert manufacturer has been based in the Australian town of Lisarow, New South Wales, since 1971 and now employs around 200 workers.
The company got its name from a United States baker called Charles Lubin, who named his company after his daughter, Sara Lee.
Sara Lee products began to be made in Australia in the early seventies. The company was acquired by Canadian giant McCain Foods in 2013 before it was bought over by New Zealand private equity firm South Island Office in 2021.
Its products can be found in Singapore at most major supermarkets. Prices range from S$6.75 for pound cakes in their iconic rectangular aluminium packaging to S$16.90 for a frozen salted caramel cheesecake.
