WA staple Mrs Mac’s could be up for sale, after the company was hard hit by the pandemic.
Mrs Mac’s management has been trying to find ways to pay down the company’s debt and grow the business following a tough period, the AFR reported.
The company is reportedly seeking an emergency capital boost to pay down debt or attract a new owner to take control of the group.
The family-owned pie maker’s new Perth-based management team are said to be working with professional services firm KPMG to find a potential investor, as part of a 12-week auction aimed at recapitalizing the business.
Sources told the Australian Financial Review that Mrs Mac’s management team had shortlisted buyers this week, after KPMG had taken a round of non-binding offers and whittled down the contenders.
KPMG is reportedly seeking final offers on August 5, with Victoria’s Temptation Bakeries rumoured to be considered as a logical acquirer.
KPMG’s team reportedly told suitors that Mrs Mac’s had been impacted by a COVID-fuelled reduction in sales, loss of a key customer in its petrol and convenience segment, and an increase in the price of raw materials such as protein and wheat.
Previously called Bakewell Pies, Mrs Mac’s was started by the MacGregor family in 1954.
Its headquarters are in Morley and although all pies and pastries — more than 120 million a year — are made at Morley, about 80 per cent of sales last year were to the Eastern States or NZ.