Mundella and two WA dairy brands went into liquidation owing millions to farmers

Mundella Foods, a Western Australian dairy processor whose yoghurt had won national awards, and two associated companies, Margaret River Dairy Company and The Cheeky Cow, were liquidated on 6 August 2026, ABC News reported. They had been in voluntary administration for a year. Their director's Deed of Company Arrangement of August 2025 told unsecured creditors they might get 68 cents in the dollar from selling real estate on lease-back. Administrators said the deed was terminated for non-compliance with its terms; the breach is not known.

Administrators' preliminary findings blamed 'poor financial control/lack of records', 'poor strategic management' and trading losses. They said there was sufficient evidence that Mundella traded while insolvent from July 2024 and Margaret River Dairy Company from December 2023, incurring about $3.7 million of debt, and that the director may be personally liable. About 235 transactions over $100,000 may be unreasonable director-related transactions. More than $620,000 left the administration accounts during the deed period; just under $13,000 remained when it ended.

Property and remaining assets were transferred to the mortgagee, Bowral Capital. Dairy farmer Phil Hall, who initially received 90 cents a litre against 76 cents from other processors, said he is owed enough to buy a house and 'basically never got paid' this year; his family has since sold its farms and left dairy after six generations. A former pasteuriser said she is owed about $10,000 in leave and superannuation. The ABC had contacted the director for comment.

Unsecured creditors owed millions may see nothing; about $3.7M of debt was allegedly incurred while insolvent; a supplier says he is owed hundreds of thousands.

Administrators cited poor financial control, missing records and poor strategic management.

The group allegedly kept trading while insolvent, from December 2023 at Margaret River Dairy and July 2024 at Mundella.

A rescue deed that promised creditors a possible 68 cents in the dollar was terminated for non-compliance.

Hundreds of director-related transactions are flagged as potentially unreasonable and will be investigated by liquidators.

Paying suppliers above market while financial controls and records are weak builds goodwill but also debt; a rescue deed only works if its terms are kept.

Liquidators at Mackay Goodwin will examine the director's duties, possible insolvent trading and the flagged transactions; administrators intend to lodge potential offences with the corporate watchdog. Assets went to mortgagee Bowral Capital, and there appears to have been no significant payout to unsecured creditors.