IGA: Shop still closed, negotiations called off
UPDATE 4:30pm: THE insolvency practice assigned to the Bucasia IGA said it was "very unfortunate” the sale was called off and would now liaise with parties holding security interests over the assets.
Dennis Offerman, a principal with Offermans Partners, confirmed negotiations with Cornetts Supermarkets had finished without an outcome.
Bucasia IGA went into voluntary administration in October, 2016, and closed its doors on Christmas Eve. Negotiations for the sale of the business had been ongoing since last year.
INITIAL: THE site of the former Bucasia IGA will stay empty after the company interested in taking over the supermarket operation walked away from negotiations.
Cornetts Supermarkets, which owns IGA stores across Queensland, including Sarina, Middlemount and Dysart, had shown interest in the Bucasia shop last year after the owner placed it into voluntary administration.
While Cornetts had been in negotiations with the landlord of the Bucasia site, CEO Graham Booysen said today they had ended without an outcome.
"We have no further plans at the moment,” Mr Booysen said.
The supermarket's financial problems were revealed in October 2016, when owner Barry Entwistle placed it into voluntary administration after he could no longer repay a $1million loan he had taken out to refurbish the shop.
Dennis Offerman, a principal with Offermans Partners, was assigned as one of the voluntary administrators.
While the store was able to keep its doors open for a short period, it eventually closed permanently on Christmas Eve.
At the time, Mr Offerman said there was interest from at least one buyer keen to take over the operation.
A supermarket has existed at the Bucasia site for more than a decade. Mr Entwhistle purchased the store as a Foodworks 15 years ago.
For residents in the area, the next closest supermarkets are a Woolworths and Coles at Rural View.
Offermans Partners has been contacted for comment.