Mundella Foods has been put into liquidation following the termination of a Deed of Company Arrangement. (ABC South West WA: Jon Daly)<\/p>\n
Milk suppliers and employees have been left empty-handed following the collapse of WA dairy brand Mundella and associated companies.<\/p>\n
The companies were put into liquidation after a rescue plan put forward by the director was terminated due to a breach of terms.<\/p>\n
Liquidators will investigate possible insolvent trading and hundreds of potentially unreasonable transactions related to director Hayden Russell.<\/p>\n
Creditors say they may not see a cent of the millions owed to them by collapsed West Australian dairy processor Mundella Foods and two other associated companies.<\/p>\n
Mundella, Margaret River Dairy Company and The Cheeky Cow were put into liquidation this month.\u00a0<\/p>\n
Director Hayden Russell is facing investigations by liquidators at Mackay Goodwin following administrators' preliminary suggestions of insolvent trading and hundreds of potentially "unreasonable transactions".<\/p>\n
Dairy farmer and Mundella Foods milk supplier Phil Hall told the ABC he was owed "enough money to buy a house" and expected to get nothing back from the liquidation.<\/p>\n
Phil Hall says he is still owed hundreds of thousands of dollars by Mundella Foods. (Supplied: Facebook\/Halls Family Dairy)<\/p>\n
"I don't know what happened to Mundella, but I know this year we basically never got paid," he said.<\/p>\n
"Myself and another dairy farmer, we both did the same thing, believing in this company.<\/p>\n
"We wanted this to work because it was the only way forward for the future."<\/p>\n
A trio of well-known dairy companies have collapsed after being put into voluntary administration a year ago. (ABC South West WA: Jon Daly)<\/p>\n
The unpaid debt contributed to his family's recent decision to sell their farms at Wokalup in WA's South West and leave the dairy industry after six generations.<\/p>\n
"I remember being three and running around this farm," Mr Hall said, choking back tears.<\/p>\n