The popular food delivery service is going bankrupt in Australia as yet another victim of the tech sector’s economic turmoil
A popular gourmet food delivery start-up is Australia’s latest company to go out of business.
CoLab, formerly known as ChefPrep, filed for bankruptcy last week after failing to raise more funding just two years after its founding.
Founded by Elle Curran and Josh Abulafia, the Sydney-based start-up offered ready-to-eat meals from 150 restaurants.
CoLab is described on its website as a 24-7 online destination offering an assortment of 1,500 products, from gourmet food and beverages, fresh produce and frozen meals in addition to gift packs.
The collapse comes just seven months after CoLab merged with Melbourne rival ChefPrep.
Backed by millionaire entrepreneur Mark Bouris, the startup previously received $3 million in funding from venture firms Artesian Ventures and Berlin-based Global Founders Capital.
The co-founders are now looking for a new buyer after a recent funding round fell through.
The company was in acquisition talks with a number of companies and EY was appointed as an administrator to lead the sale process and assess the options for restructuring the company.
“We appointed EY as administrator when it became clear we could not continue acquisition talks on the current catwalk
“We worked closely with EY throughout the process and we are confident in their ability to deliver the best outcome for the company, employees and creditors.”
The start-up continues to run as the search for a new buyer is launched.
Morgan Kelly and David Kennedy of EY have been appointed as administrators.
“After the business has stabilized, we will conduct an urgent interest campaign to determine whether a strategic fit for CoLab can be identified,” they said.
“The current environment is challenging for start-ups, but the voluntary board regime is designed to maximize a company’s chances of survival.
We intend to explore all options for CoLab and its stakeholders and will update everyone as the administration progresses.”
Founded as Co-lab Pantry in 2021, the start-up merged with ChefPrep the following year.
Born out of a shared frustration of mass-produced ready meals and food delivery services, we wanted to shake up our industry.
‘This means we never compromise on taste, quality or convenience, while connecting our wider community with Australia’s most loved restaurants, cafes, growers and makers.
More to come