Pie Face raised $35M, reached 80 stores, and collapsed twice in three years

Pie Face was an Australian pie shop chain founded in Sydney in 2003 by Wayne Homschek. Its pastries topped with smiling faces became a national novelty, and with about $35 million in funding the chain grew to roughly 80 stores.

The expansion outran the economics. The chain first went into administration in November 2014. By January 2017 it was in receivership with about 30 franchised stores, $4 million in secured debt and nearly $5 million unsecured — more than $1 million of it owed to its own employees. The receiver said the business was close to profitability and drew seven or eight bidders.

On April 13, 2017, petrol retailer United Petroleum bought the brand, keeping about 80 staff, while tens of millions of dollars remained owed to lender Macquarie. The smiley pies survived as a side business of a fuel company — the chain's independent life was over.