Popular meal delivery service goes bust in Australia in yet another victim of the economic turmoil striking the tech sector
A popular gourmet meal delivery start-up has become the latest Australia business to collapse.
CoLab, formerly known as ChefPrep went into administration last week after it failed to secure more funding, just two years after it was established.
Founded by Elle Curran and Josh Abulafia, the Sydney-based start-up offered ready-to-cook meals from 150 restaurants.
CoLab is described on its website as a 24-7 online destination boasting a range of 1500 products from gourmet pantry food and drinks, fresh produce and frozen ready meals alongside gift packages.
The collapse comes just seven months after CoLab merged with Melbourne rival ChefPrep.
The start-up was backed by millionaire entrepreneur Mark Bouris and previously secured $3 million in funding from venture firms Artesian Ventures and Berlin-based Global Founders Capital.
The co-founders are now seeking a new buyer after a recent funding round fell through.
‘The business was in acquisition discussions with a number of businesses and EY was appointed as administrators to manage the sales process and to assess options for restructuring the business,’ the pair said.
‘We appointed EY as administrators when it became clear that we were unable to continue acquisition discussions on the current runway
‘We have been working closely with EY throughout the process and we are confident in their ability to achieve the best result for the business, employees and creditors.’
The start-up continues to operate as normal as the search for a new buyer is launched.
Morgan Kelly and David Kennedy from EY have been appointed as the administrators.
‘Following stabilisation of the business, we are conducting an urgent expression of interest campaign to determine whether a strategic fit for CoLab can be identified,’ they said.
‘The current environment is challenging for start-ups, but the voluntary administration regime is designed to maximise the chances of a business continuing to exist.
We intend to explore all options for CoLab and its stakeholders, and will keep everyone informed as the administration progresses.’
Established as Co-lab Pantry in 2021, the start-up merged with ChefPrep the following year.
‘Born from a shared frustration of mass manufactured ready-made meals and food delivery services, we set out to shake up our industry,’ its website states
‘This means never compromising on taste, quality, or convenience, while connecting our wider community to Australia’s most loved restaurants, cafes, growers and makers.
More to come
