Passion8 can’t pay its bills

PASSION8’S creditors, including Katzy’s, Grandma Moses, the Kashrut Authority and Eilat at Hadassa Butchery, look set to lose their money.

Manfred Holzman, who was appointed administrator when the caterer was put into voluntary administration late last month, told The AJN this week that “it is highly unlikely that unsecured creditors will get any return”.

He said the suppliers have continued to service Passion8 on a seven-day account, but that the money owing to them when the business was put into voluntary administration is unlikely to be seen.

At a meeting with creditors on Tuesday, it was revealed that four parties have expressed an interest in taking over the business.

Kashrut Authority president Baron Revelman, who was at the meeting, said the state of Passion8’s affairs, as outlined in a recent creditors meeting, was dire.

“They outlined the amount of money that they owe and it is a substantial amount of money,” Revelman said. “I think given the explanation that we were given, the likelihood of any funds coming to organisations would be nil.”

Revelman said the creditors were also told about the different divisions of the business and said the frozen food division, which supplied food to supermarkets, looks unlikely to continue.

The AJN revealed last week that Passion8’s turnover dropped $600,000 in the last 12 months.

The business will continue to operate until September 1 with the backing of wealthy businessmen.

JCA chief executive Ian Sandler has been heading up the committee trying to restructure the business.

He said if Passion8 collapsed tomorrow, then the 600 kosher meals each week for the COA’s Meals on Wheel programs would disappear overnight, everyone that has upcoming functions would be in a panic, and the big communal organisations, including the JCA, WIZO and many others, would have a major problem on their hands.

JOSHUA LEVI

Photo: Ingrid Shakenovsky

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