Gum Tree Pies has entered a deed of company arrangement with its creditors, retaining business assets and local staff in Bright, Yackandandah and Wodonga as they survive liquidation.
Appointed administrators met with creditors of the business last week to decide on the future of the bakery, which entered voluntary administration on 8 April, reporting around $1m in debt.
Three options were tabled to creditors at the meeting – whether the company execute a deed of company arrangement (DOCA), the administration should end, or the company be wound up.
They voted to execute the proposed DOCA, recapitalising the company and safeguarding the roles of more than 55 employees with Gum Tree Pies.
Bakery co-owner Melinda Nedziak said it was an…