A popular Australian cookware company has gone into voluntary administration after only three years in operation.
Zega Holdings PTY LTD appointed administrators on March 8, according to documents filed with the Australian Securities and Investments Commission (ASIC).
The administrators are Tim Heesh and Mark Everingham from TPH Advisory.
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Zega, which was launched in 2021, claims to sell the “world’s first intelligent, walk-away cookware”.
Its products are touted as “self-cooking” pots, which allows the user to put the ingredients in the pot, heat it up, then turn the stove off and leave it to keep cooking.
Since launching three years ago, the company has sold 7000 of its pots.
Everingham said Zega’s decision to enter voluntary administration was “difficult”.
The company also has a new range of products in development that have not yet launched, which Everingham said was “enormously disappointing”.
He said the business had been placed into voluntary administration after failing to secure a financial investment partner.
“The business has been placed into voluntary administration due to a lack of working capital required to support the business strategy along with a downturn in sales,” Everingham said.
“The owners had been attempting to secure a financial investment partner over the past few months, however time has run out and their working capital requirement became urgent.”
The administrators are seeking urgent expressions of interest for investors or for the sale of the business.
Everingham said Zega represents an “outstanding strategic opportunity” for an investor to acquire a business which has the potential to become a “household name”.
Expressions of interest close on Friday, April 5.
Unwanted recognition at the Shonky Awards
The following year, however, it picked up a CHOICE Shonky Award in 2022 for its $299 Digital Pot.
At the time, CHOICE kitchen expert Chantelle Dart, who tested the pot, said the chicken she attempted to cook following Zega’s instructions came out raw.
“It really disappointed us. When our experts cooked chicken according to the Zega app recipe, the chicken was partially raw, the sauce was watery and the vegetables were undercooked,” she said.
Zega hit back, stating that the company had received very few complaints and returns, and that they had offered to talk to CHOICE about their cooking issues.
“We have received countless positive reviews from customers who absolutely love their Zega, and have received numerous positive media reviews from highly experienced journalists who thoroughly road-tested our cookware,” the company said.
“We were surprised to hear from CHOICE about their experience cooking the coq au vin.
“Unfortunately, the CHOICE reviewer in question declined our offer to talk through her issues over the phone.”