Yahoo Finance Aussie franchise Pie Face goes into administration
Aussie franchise Pie Face is now in voluntary administration, following the closure of several of its shops in the United States.
Pie Face founder and former Citigroup banker Wayne Homschek has handed over his company to advisory firm Jirsch Sutherland in an effort to get the business back on track.
Homschek sent a letter last week to store owners announcing the news, it has been reported.
Owners were told that struggling company-owned stores, which is about one third of those in Australian - would likely be the first to go, according to the Herald Sun.
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Pie Face’s troubles re-surfaced last month when New Yorkers noticed that all but one of its seven shops has closed.
The company reportedly has 78 stores around Australia and last year announced its interest in expanding overseas.
But even then, there were signs that the pie franchise was in trouble.
Related: Bankruptcy on the rise in Australia
In 2013, the Australian Financial Review reported that Pie Face was trying to sell stores that were losing money.
According to leaked documents they obtained, Pie Face was posting losses on nearly all of its company-owned stories even in early 2012.
Despite news of voluntary administration, Homschek told Fairfax that parts of the company were still profitable and that an initial public offering was still a possibility next year.
