Alcoholic seltzer brand South Ave has entered voluntary administration, reportedly owing approximately $11 million in unpaid excise duties to the Australian Taxation Office.
Filings with ASIC show that South St Liquor Pty Ltd, operating under the name South Ave, placed Nathan Karl Schwarz and Daniel Lopresti in charge as administrators on November 6, according to information from nine.com.au.
The collapse follows a dispute regarding repayment timelines for the excise debt. Co-founder and chief executive Reno Marrasso told Adelaide Now that the company discovered the $13 million liability after conducting a voluntary audit last year, despite previous indications from the tax office that the business was in credit.
“For a period with the ATO we kept being told we were in credit with excise, and we thought this doesn’t make sense, so we ended up choosing to do a voluntary audit,” Marrasso said. The company subsequently entered a three-year repayment plan and had managed to pay down part of the debt before the tax office reduced the repayment period to 12 months.
“And for us, a 12-month time frame is never going to be feasible because it would just completely destroy the cash flow of the business,” Marrasso told Adelaide Now. The company, which was founded by Scott Grieve, Sophie Sexton, and Marrasso, had approximately $11 million remaining owing when the administrators were called in.
The administration occurs just days after the brand celebrated its fifth birthday on Facebook. While the company’s website remained live on Wednesday afternoon, no public statement regarding the administration was visible on the brand’s social media.
South Ave has partnered with A-League clubs Adelaide United and Sydney FC, as well as LIV Golf.
The brand has also partnered with influencers, including Australian content creator Tommy Armour. The company’s online portal still features upcoming product lines and new tastes, characterising the enterprise as a South Australian venture that started with “a big dream from a small living room” with ambitions of establishing itself as the premier beverage for consumers seeking sugar-free, low-calorie seltzers.
Who are the administrators for South St Liquor Pty Ltd?
Nathan Karl Schwarz and Daniel Lopresti were appointed as administrators on November 6, according to ASIC notices.
How much does the company owe the tax office?
The company reportedly owes about $11 million in excise duties.
Co-founder Reno Marrasso said that the company discovered a $13 million excise debt after a voluntary audit last year.
Is the South Ave brand still operating?
The brand’s website remained live on Wednesday afternoon, and there has been no public statement about the administration visible on the brand’s social media.