Dessert Brand Sara Lee Collapses Due To High Operating Costs & Supply Chain Issues

Dessert Manufacturer Sara Lee Collapses, Goes Into Voluntary Administration

Iconic dessert brand Sara Lee has collapsed and went into voluntary administration.

After over 50 years of manufacturing people’s childhood sweet treats, it has appointed business consulting firm FTI Consulting to handle its affairs.

This move is to restructure the company, with the possibility of a sale.

The decision came after it battled high operational costs and supply chain issues over the last year.

High operating costs & supply chain issues led to Sara Lee going into administration

According to The Sydney Morning Herald, Sara Lee appointed FTI Consulting as its administrators on Tuesday (17 Oct).

Over the last 12 months, the dessert maker has faced an increased cost of operations as well as supply chain issues. These factors hence contributed to this decision.

In a statement, Vaughan Strawbridge of FTI Consulting said they will immediately start a process to sell or restructure the business, while keeping operations running.

Strawbridge acknowledged that the company has been an iconic brand since its establishment in Australia in 1971, saying that they aim to “continue its long history of manufacturing in Australia”.

Currently, it has over 200 employees at its manufacturing facility on the Central Coast of New South Wales.

“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,” he said.

Creator of dessert brand named it after his daughter back in the 1930s

The dessert manufacturing business’ history goes as far back as the 1930s.

Back then, a man from Chicago, Charles Lubin, made a fresh cheesecake and christened it Sara Lee, after his daughter.

Lubin then came up with a frozen line of products to meet the increasing demand for his cakes.

Now, the manufacturer trades in Australia, New Zealand, the Middle East, and South-East Asia.

The Straits Times reports that the products are still available in Singapore supermarkets, such as FairPrice and Cold Storage, at the time of writing.

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Featured image adapted from Sara Lee Desserts on Facebook and Facebook.