Mundella Foods liquidators investigate director over questionable deals
Liquidators are investigating Mundella Foods. They want to know if former director Hayden Russell made improper transactions totalling more than $2 million.
The West Australian dairy company collapsed into liquidation in August. Creditors are owed $12.5 million.
Liquidators found frequent cash withdrawals totalling about $778,000. These may have been unreasonable.
The company may have traded while insolvent from July 2024. Those transactions were worth $1.3 million.
Liquidators are also checking if the sale was sound. Mundella and Margaret River Dairy Company sold to processor Artisanal Market.
Workers are still owed almost $940,000 in unpaid wages and superannuation. Russell says he acted in good faith.
He spent personal savings to keep the company running. Liquidators said Russell likely cannot pay any claims against him.
They said further investigations need more funding from creditors.
- $2 million
- Questionable transactions
- $778,000
- Cash withdrawals identified
- $12.5 million
- Total creditor debt
- $940,000
- Unpaid worker entitlements
Why it mattersThe investigation raises questions about director accountability. It highlights the damage misconduct can cause to workers and creditors.
AustraliaWorkers and creditors across Western Australia face significant losses; the collapse shows risks in farm and dairy business leadership.
✓ Claims checked against the source. checked 19 h ago
