The three tragic causes of Sara Lee’s voluntary administration in Australia

Sunrise presenter Nat Barr has led a growing chorus of heartbroken Aussies calling for the rescue of Sara Lee after the frozen dessert company went bankrupt, while a retail expert reveals where it all went wrong for the Aussie icon.

The beloved Australian company has been placed into voluntary administration, putting 200 jobs at risk.

Famous for its frozen treats including apple pies, cheesecakes, sticky date pudding and ice cream, Sara Lee has been a family favorite in Australian households for more than half a century.

A desperate hunt is on to find a new buyer who can bring Sara Lee back from the brink of collapse, as business experts weigh in on the possible cause.

Sara Lee is one of dozens of well-known Australian brands to have gone bankrupt in 2023 alone.

“We’ve seen this with a lot of companies, they just can’t keep up with mass production, whether it’s international products or cutting costs,” explains Sydney business expert Amanda Rose.

“A white knight needs to come along and maybe reinvent it into something else. But we do need Sara Lee in our lives.”

Industry experts believe that a lack of advertising, investment and marketing may have contributed to the company’s demise, and consumers turned to competing brands and cheaper products.

“The cost of producing these goods has increased and we have also become more competitive with other brands,” Meg Elkins from RMIT’s School of Economics, Finance and Marketing told 3AW.

‘Sometimes with inflation we choose the cheapest choice and in the end we pay the price.’

The shocking news caused an outpouring of sadness and fond childhood memories for sweet-toothed people who grew up with the dessert.

Aussies rushed to the shops to stock up on Sara Lee before they ran out, including the Sunrise team who snacked on the treats on air during breakfast on Thursday.

“We have one of our producers heading to stores right now because, you know, a lot of us haven’t bought one in a while,” Barr said during a panel discussion.

“Let’s save Sara Lee, it’s all our fault.”

Perth mayor and TV personality Basil Zempilas added: “It’s the end of an icon and an era.”

“If we all went to the supermarket and took home a cheesecake we might be able to save the company, one Australian at a time.”

Sunrise co-host Matt Shirvington described it as a sad day for Australia.

“I’m going to buy one of these when I go home,” he said.

The news sparked a divided debate online.

‘The taste of my childhood! Always still a little frozen. Someone has to swoop in and save them!’ said one Australian.

Another added: ‘That’s so wrong, another Aussie company has become so sad that their products are beautiful, I’m going to miss it.’

A third wrote: ‘Christmas is ruined!’

But many others were not surprised when they heard about Sara Lee’s death.

‘If all these companies didn’t raise prices, people would be able to afford more. I’ve stopped buying these ‘luxury’ things because we just can’t afford them now!’ wrote another woman.

A second added: ‘If you think about it, they haven’t done an advert in forever… (not even a Coca-Cola advert). Nowadays it’s a big mistake not to advertise.’

Vaughan Strawbridge, Kathryn Evans and Joseph Hansell of FTI Consulting have been appointed as volunteer administrators for Sara Lee.

“The Australian Sa Lee company has a long history of producing desserts, including frozen cheesecakes, pies, crumbles and ice cream, using high-quality, authentic ingredients,” the administrators said.

‘The Australian-based production company trades as Sara Lee under license from the global trademark owner, with rights to operate in Australia, New Zealand, South East Asia and the Middle East.

‘The appointment to the company is to pursue a restructuring and sale of the Sara Lee business while continuing to operate.’

Mr Strawbridge believes there will be strong interest from several companies to acquire the business, which once had TV star Sophie Monk as an ambassador.

“We are working with Sara Lee’s management team and staff to continue operations while safeguarding the future of the company,” he said.

“We are immediately commencing a process to sell or restructure the business and continue its long history of manufacturing in Australia.

‘We expect a lot of interest in the company and will work with these parties and stakeholders to reach a result as quickly as possible to safeguard the current business and provide clarity to the loyal and committed employees and customers.’

The company, which employs approximately 200 peoplewas founded in Lisarow on the NSW Central Coast in 1971.

The website states that ‘bakers and pastry chefs create delicious desserts and pastries for Australians and New Zealanders every day, using traditional baker’s flour, real eggs and fresh cream’.

The company was founded in Chicago, USA, by Charles Lubin, who named his first bakery after his daughter Sara Lee in the 1930s.

Sophie Monk was the face of a recent advertising campaign for the company.

In Monks’ ad, dressed in cream-colored silk pajamas and bathed in morning sunlight, she downed spoonfuls of crème brulee in between singing lyrics to Celine Dion’s power ballad All My Myself.

Monk sang the words to the ballad in her apartment, singing, “When I was young, I ate with everyone/Sharing dessert was so much fun… Those days are over.”