WA Dairy Group Mundella Falls into Liquidation, Director Under Investigation

Mundella Foods, Margaret River Dairy Company and The Cheeky Cow were placed in liquidation on August 6 after a Deed of Company Arrangement proposed by director Hayden Russell was terminated for non-compliance. Unsecured creditors, including dairy farmer Phil Hall, allege they are owed millions and fear they will receive no payout, while former employee Mairee Wall says she is still owed about $10,000 in leave and superannuation.

Liquidators Mackay Goodwin have identified roughly 235 transactions exceeding $100,000 that may be unreasonable and suggest the firms traded while insolvent from July 2024 and December 2023, potentially exposing Russell to personal liability. About $620,000 was spent from the administration account during the DOCA period, leaving just over $12,000 when the arrangement ended, and the remaining property has been handed to mortgagee Bowral Capital Pty Ltd. Russell’s recent purchase of a stallion and several horses for under $10,000 has been reported, though no link to the dairy companies’ funds has been found. The liquidation will continue with further investigations into Russell’s conduct as director.