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 send a letter to store owners last week informing them that the company was going into voluntary administration, it has been reported.

Owners were told that struggling company-owned stores - about a third of those based in Australian  - would likely be the first to go, according to the Herald Sun.

Pie Face’s troubles re-surfaced last month when New Yorkers noticed that all but one of its seven shops has closed.

Pie Face reportedly has 78 stores around Australia and last year announced its interest in expanding overseas.

But even then, there were reports that the pie franchise was in trouble.

In 2013, the Australian Financial Review reported that Pie Face was trying to sell stories that were losing money.

According to leaked documents they optained, it was reported that Pie Face was posting losses on nearly all of its company-owned stories 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.