Food service provider for the education sector, Libelle Group, has gone into liquidation this morning.
Deloitte New Zealand’s Robert Campbell and David Webb said they had been appointed liquidators.
The liquidators said Libelle Group was contracted by Compass Group, a global catering company, to deliver approximately 125,000 meals daily as part of the government’s Ka Ora, Ka Ako Healthy School Lunches programme.
Libelle Group is a member of the Compass Group-led School Lunch Collective that was awarded an $85 million annual school lunch contract last year. The new programme only started in January.
The liquidators said they have promptly collaborated with Compass to maintain uninterrupted service.
Associate Education Minister David Seymour characterised the situation as a commercial issue between Compass and Libelle.
“Compass has assured the ministry that any disruption will be minimised, and the liquidation process will not materially impact the provision of school lunches.”
”To ensure the uninterrupted delivery of the school meals provided by Libelle central production kitchens, the Compass Group has told the ministry that it will assume operations during this transition and take responsibility for providing meals every school day.”
Compass Group’s head, Paul Harvey, affirmed that his top priority is to guarantee that 120,000 students continue to receive nutritious meals daily through the Ka Ora, Ka Ako Healthy School Lunches programme.
“Deloitte, as liquidator, has asked Compass Group New Zealand to help manage the transition and ensure stability while exploring options for Libelle’s future. To minimise disruption, Compass has taken immediate steps to support Libelle, including ensuring staff wages are paid and keeping kitchen facilities running,” Harvey said.
“We recognise the vital role that Libelle’s staff and partners play in delivering school lunches, and we are committed to ensuring the future of Libelle as part of the programme and supporting its people through this process.”
Seymour reformed the Healthy School Lunches programme with the goal of saving taxpayer money. However, the programme has faced numerous issues under the new contractor, including late deliveries, missing lunches, and poor food quality, leading to upset parents and principals requesting a return to the old system.