Massive twist as popular delivery start-up is SAVED at the last minute – after announcing it was going under
- CoLab went into administration earlier this month
- Has been given a lifeline by supplier Efoodz
- Delivery start-up sector has been struggling
- MilkRun, Voly gone under in Australia, Deliveroo withdrew
A popular gourmet meal delivery start-up has been saved from the brink of collapse after a supplier jumped at the chance to take over the business.
CoLab went into voluntary administration earlier this month after the Sydney-based start-up, which offered ready-to-cook meals from 150 restaurants, failed to secure more capital.
Financial giant Ernst and Young took over operations of the business with hopes it may find new life with new owners, all while beginning to wind CoLab up.
When Efoodz managing director Andy Lam was contacted by the administrator asking what to do with unsold stock supplied to CoLab, he offered a lifeline.
The Melbourne ready-made meal platform has acquired the CoLab business and assets for an undisclosed cash amount, with the deal finalised on Friday.
A gourmet meal delivery start-up has been saved from collapse by EFoodz (pictured), which was one of its suppliers
Mr Lam looks forward to turning around CoLab’s fortunes with plans and expand its current Sydney and Melbourne customer base nationwide within six months.
‘I was shocked when I heard about the CoLab collapse because I thought it had the backing,’ he told Daily Mail Australia
‘I thought about it and saw it as a good opportunity to buy the business which had a lot of potential but was in the process of being wound down.
‘It would have been a waste and shame for the business to end when it could be restored as I think it can be profitable with a change of structure.’
Mr Lam’s first job will be to relocate CoLab operations to Efoodz’ purpose-built facility in Melbourne.
‘It opens a lot of doors from expanding the range and selling our own products on the platform to attracting new customers,’ he said.
‘Our message to CoLab customers is that the business is in good hands and that we will take care of suppliers.’
‘The purchase presents strong growth opportunities for our group, capitalising on existing facilities, cost efficiencies and the opportunity to enter new domestic markets, realising CoLab’s full potential in the premium food and beverage space.’
Efoodz managing director Andy Lam (pictured) jumped at the chance to turn CoLab’s fortunes around and bring a new lease of life to the business
Andy Lam will relocate CoLab’s operations to Efoodz’ purpose built facility in Melbourne (pictured)
A letter to vendors from EY states Efoodz will continue to operate CoLab’s platform on a ‘business as usual’ basis.
Having previously been in hospitality, Mr Lam founded Efoodz in 2021, the same year CoLab was originally founded by Elle Curran and Josh Abulafia.
‘It was founded in a little kitchen doing meals during Covid after the pandemic claimed the cafe I was running,’ Mr Lam recalled.
‘I began cooking up some meals and packaging meals which I sold online. Sales grew and within a year, we had outgrown the kitchen.’
Two-and-a-half years on, Efoodz consists of 35 staff and prepares more than 60,000 meals every month with a ‘Kitchen to Customer in 48 hours’ guarantee.
Founded as Co-Lab Pantry in 2021, CoLab merged with ChefPrep the following year with big plans to expand nationally to other capital cites and regional areas.
CoLab is described on its website as a 24-7 online destination boasting a range of 1,500 products, from gourmet pantry food and drinks, fresh produce, frozen ready meals and gift packages.
It was previously backed by millionaire entrepreneur Mark Bouris and had also secured $3 million in funding from venture firms Artesian Ventures and Berlin-based Global Founders Capital.
CoLab previously employed 16 staff who were all made redundant and won’t be rejoining the business.
The company’s near-miss follows a turbulent year for the struggling food delivery start-up sector with the demise of Send, Delivr, Deliveroo, Voly and MilkRun, all of which resulted in the loss of hundreds of jobs.
CoLab co-founders Elle Curran and Josh Abulafia (pictured) appointed EY as the administrators for their start-up earlier this month
