HomeBreaking NewsAdelaide bakery chain closes after 40 years

Adelaide bakery chain closes after 40 years

Summary

Liquidators were appointed on Sunday to wind up the company, following its last day of trade over the weekend.About 65 staff, mostly casuals, are affected by the closure of the seven outlets, including at its central baking site in Hindmarsh.Liquidator Simon Miller from Clifton Hall said Covid-19 had dented the company’s profits over the past two years, leading to its financial collapse.“It obviously had been going for a long time but it hadn’t been as profitable in the last couple of years,” he said. “The directors had looked to try and sell the business but couldn’t get any takers. And so it just got to a stage where they couldn’t support it anymore and needed to basically make an (insolvency) appointment.”German immigrant Hartmut Feiter opened the first Rheinland bakery in Hindmarsh in 1981, specialising in German cakes, pastries and bread.The central bakery operation remained at Hindmarsh as the retail chain grew to six more outlets at Westfield Marion, Tea Tree Plaza, Elizabeth, Colonnades, Arndale and Rundle Place in the CBD.Mr Miller said employees had been paid most of their entitlements, while it was too early to estimate amounts owed to creditors.“Certainly there’ll be some employee claims, so we’ll work with employees to deal with their claims and hopefully we can get them all cleared,” he said. “There’s quite a lot in the way of equipment used for the baking at the head office, so we will look to have an auction in the coming weeks. There’ll be some things to be sold.”Mr Miller said the lingering effects of Covid-19 continued to pose a serious challenge to hospitality operators.“We’ve had a little bit of an increase in enquiries in the last three to four weeks, and that’s led to a couple of matters – a couple of convenience stores, a couple of retail, cafes as well,” he said.“And it’s almost always been Covid or restriction driven. I’m not sure if this is the beginning of an uplift or if it’s just a bit of a blip but time will tell.”

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