Max Brenner Is Considering Recapitalization Of Its Business

  • Oct 03, 2018 AEST
  • Team Kalkine
Max Brenner Is Considering Recapitalization Of Its Business

The luxury chocolate chain Max Brenner is currently dealing with an uncertain future as it is considering going into voluntary administration. This decision is being taken mainly due to the sluggish sales and rising costs which have made a tough retail climate for the company. McGrathNicol has been appointed as administrators by the Company’s Board to undertake the urgent review to propose a plan for the company to deal with the current financial problems. McGrathNicol is considering selling Max Brenner or recapitalizing the business. The company is currently having a staff of 300 and it’s headquartered in Alexandria, Sydney and the company is having 15 stores cross NSW, 12 in Queensland. The company is currently operating in Israel, the US, Japan, Singapore, Russia, and China.

According to the recent reports, there could be a political factor behind the company’s decline. As the chain began life in Israel it has suffered from criticism over its ongoing period and there have been cases of feuds with Palestine people. It is also believed that the change in the Australian’s food habits could be one of the main reasons for the company’s decline.  

In the late 1990s when Max Brenner was first opened in Australia, the Food scene was very different in Australia and the company witnessed an overwhelming welcome from the Australian people as there was a huge demand for the chocolates. In recent times, the novelty of Max Benner has largely decreased as artisanal chocolate and associated shops and cafés are everywhere and they have largely acquired the Australian market.

In January 2018, the company announced that it was planning to open seven new local stores in a year, however, on 29 June 2018, Sunstate Ceilings which is a Queensland business filed a wind-up notice against the Max Brenner. McGrathnicol is closely working with the management team of Max Brenner’s to help them solve the Max Brenner chain’s financial problems. It is also announced that all Max Brenner stores will run normally with minimum disruption and the McGrathnicol will complete its urgent review and propose its solution.

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