Red Rooster founder Peter Kailis, Westpac owed about $20 million in olive oil business collapse: Report

Peter Kailis, the founder of Red Rooster, has reportedly emerged with a $1 million claim in the collapse of the debt-laden Kailis Organic Olive Groves, which was founded by his son Mark Kailis.

The Australian Financial Review reports that Peter Kailis joins Westpac as a major creditor in the business, which collapsed two months ago just a year after raising $25 million from investors. Westpac’s claim is reported to have risen from $15.5 million to up to $20 million.

James Thackray and Shaun Fraser of McGrathNichol in Perth were appointed voluntary administrators of Kailis Organic Olive Groves, Kailis Olive Processing, Everyday Organic and Organic Olive Management in November.

Thackray told SmartCompany at the time he was confident a buyer would be found for Kailis Organic Olive Groves, a non-listed public company and the largest of the four.

“There is a market for it,” he said, noting the company had forged a dominant position in the fledgling certified organic olive oil market. KordaMentha has since locked in a distribution deal with supermarket giant Woolworths, the paper has reported.

The oil grove manager, processor and distributor had revenue of about $5 to $7 million in the last year, and had about 20 staff members, he said.

According to the AFR, about 40 entities have made contact with KordaMentha about the business, with a buyer tipped to emerge from Asia or North America.

The Kailis family, once a Rich List member, is a well-known West Australian food family. The Kailis family came to Australia in 1917 from Greece, with George Kailis setting up business interests in WA and his son founding Red Rooster in 1974. The family’s other interests include seafood and pearls.

Thackray was contacted for comment this morning but not available before publication.