This press release was sent to the ASX on 24th May 2023 by Wexted - administrators of the Kaddy Group, announcing that Kaddy Marketplace was sold. We're reposting it here to give further clarity about the future.
The Administrators are pleased to announce the completion of the sale of the ‘Marketplace’ business formerly operated by Kaddy Australia Pty Limited (Administrators Appointed) on 23 May 2023 to Kaddy Marketplace (Aust) Pty Limited who are supported by the Lecca Group (Lecca). The transaction occurred following an expression of interest (EOI) campaign.
The $550,000 purchase consideration incorporated a completion payment, forgiving a loan advance to the Administrators to trade on the Marketplace business and assuming associated employee entitlements. The residual sale proceeds will be used to pay down secured borrowings and cover the costs of the administration.
The offer funded from Lecca was the highest offer received during the truncated sales campaign undertaken and was the only offer capable of immediate acceptance and unconditional. The business and asset sale transaction allows for continued employment for around 25 staff and no changes to the senior management team.
Mr Goyal said, “We would like to thank the Kaddy team for their support during the Administration. The transaction will allow for customers and suppliers to continue to use the Marketplace platform”.
Background to Lecca
Lecca is a Singapore investment holding company focused on food and beverage distribution, logistics and e-commerce. Lecca owns Cellarbration, a Singapore-based online alcohol delivery business. The acquisition marks an expansion into the Australian market for Lecca.
Wind down of the Fulfilment business
In light of limited funding and interest, the loss-making fulfilment and logistics side of the business is being wound down. The Administrators are working with landlords and interested parties on a site-by-site basis to hand over sites and return third-party-owned stock to Kaddy customers.
Second meetings of creditors
The second meetings of creditors will be held for each of the entities within the Kaddy Group on 8 June 2023. At this meeting, creditors will have the opportunity to decide on the future of Kaddy Group. A meeting notice setting out the time and place for the second meetings of creditors and the
Administrators’ recommendation to creditors will be distributed to creditors of the Kaddy Group on 1 June 2023.