Pie Face

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Pie Face
Subsidiary and franchise system
IndustryRestaurant
Founded2003
Key people
Bruce Feodoroff (CEO)
ProductsCoffee, pies and soft drinks
OwnerUnited Petroleum (2017-present)
Websitewww.pieface.com.au

The Pie Face chain, founded in 2003 in Sydney, Australia, by Wayne Homschek, predominantly sells various type of pies and coffee.[1] Following a period of rapid growth in Australia and overseas, the company entered administration in 2014 and the majority of the chain's stores closed. As of 2017 it remained trading, though it had entered receivership the previous year.

History[edit]

A Pie Face store at Sydney Airport in 2017

Pie Face was established in 2003, and rapidly expanded.[2] After opening a number of stores in Australia, it established stores in New York City during 2012 and New Zealand in late 2013.[3] At its peak the chain had 80 stores in Australia and the United States, and planned to open a further 100 worldwide.[4][2] Pie Face received $A35 million in funding, including from a number of high profile investors who hoped that it would be eventually listed on the stock market.[2]

In November 2014 Pie Face entered voluntary administration, facing legal action both in Australia and the US.[5][6][7] Prior to entering administration it had been considering a stock market listing to be valued at $150 million, and had agreements to establish stores in Asia, Europe, the Middle East and the United States.[8] The firm secured financing in December 2014, enabling it to continue trading. However, its focus was shifted mainly to wholesale and retail sales.[9] Large numbers of company-owned and franchised stores closed as result, with the loss of hundreds of jobs.[4]

Pie Face went in receivership again in late 2016, and closed eleven company-owned stores. As at 24 November 2016 approximately 26 franchised stores remained open.[10]

In January 2017 it was reported that the chain was nearing profitability, and now had 30 franchised stores and intended to expand overseas again with a focus on Japan and South Korea. However, it continued to have debts of $9 million, including $1 million owed to staff, and was facing a motion to be wound up for unpaid debts. At this time its receivers told the media that unsecured creditors were unlikely to receive any funds, but they believed the business had significant "growth potential, if properly managed" and seven or eight companies were considering purchasing the chain.[2] All the New Zealand outlets had closed by the end of 2017.

In April 2017, it was acquired by United Petroleum for an undisclosed sum.[11]

See also[edit]

References[edit]

  1. ^ "Pie Face Menu". pieface.com.au. Retrieved 14 July 2015.
  2. ^ a b c d Heffernan, Madeleine (17 January 2017). "Pie Face receiver says business is close to profitability and sale". The Canberra Times. Retrieved 28 March 2017.
  3. ^ Harper, Jane (4 July 2014). "Pie Face franchise puts new twist on classic Aussie food staple". Herald Sun. Retrieved 29 March 2017.
  4. ^ a b Chung, Frank (17 January 2017). "Buyers line up for a slice of Pie Face". news.com.au. Retrieved 28 March 2017.
  5. ^ Keating, Eloise (24 November 2014). "Pie Face plunges into administration". smartcompany.com.au. Archived from the original on 24 November 2014.
  6. ^ Redrup, Yolanda (8 April 2014). "Pie Face in legal action, as former franchisee seeks $800,000 for misleading conduct". smartcompany.com.au. Archived from the original on 8 February 2016.
  7. ^ Keating, Eloise (1 December 2014). "Pie Face under attack as disgruntled builder sues US arm over unpaid bills and receivers appointed". smartcompany.com.au. Archived from the original on 14 January 2015.
  8. ^ Greenblat, Eli (16 February 2015). "Pie Face founder forced out". The Australian. Retrieved 29 March 2017.
  9. ^ Heffernan, Madeleine (31 December 2014). "Fast-food chain Pie Face on the rise". The Canberra Times. Fairfax Media.
  10. ^ Mitchell, Sue (24 November 2016). "Pie Face goes up for sale after second collapse in two years". The Canberra Times. Retrieved 24 November 2016.
  11. ^ Chung, Frank (13 April 2017). "United Petroleum acquires Pie Face". news.com.au. News Corp Australia. Retrieved 13 April 2017.