Kaddy enters administration, its future options under assessment
Liquor wholesale distributor DW8 – operating as Kaddy – has been placed in administration, just a week after rival Boozebud’s collapse.
Kaddy consists of Kaddy Marketplace, a B2B wholesale marketplace, Kaddy Community, an online social network to connect like-minded beverage and hospitality professionals, and Kaddy Fulfilment, which includes national warehouses for suppliers.
Last week, administrators Rajiv Goyal, Chris Johnson and Joseph Hayes of Wexted Advisors were appointed to oversee the sale of the business.
According to an ASX statement, the administrators are “undertaking an urgent assessment” of the business and will be looking to sell its entities as “a going concern” or recapitalisation via a Deed of Company Arrangement.
They will work with the management, employees, suppliers and customers to stabilise operations while seeking the “best outcome for the business”.
This decision comes months after the company announced a trading halt in February requesting “extensions for a voluntary suspension” pending the release of information pertaining to a capital raising.
Last November, the business closed its consumer arm and began operating as a pure-play B2B fulfilment service provider following a strategic review.
CEO Steve Voorma assured then that the business was generating growth momentum and had “significant scalability” opportunities however that did not fall through.
Kaddy’s Facebook page said it is “continuing to operate and process orders” and thanked customers and suppliers for their “ongoing support”.