Quinn Family Rescues Sara Lee from Administration

By Jeff Gibbs

The Gold Coast family, renowned for their successful rescue of the Darrell Lea chocolate brand from receivership over a decade ago, has once again emerged as saviours, this time for the embattled dessert-food brand Sara Lee.

In a deal announced by the company’s administrators, a private company owned by Klark and Brooke Quinn has stepped in to acquire Sara Lee’s Australian and New Zealand business, offering a lifeline to the 200 jobs that were hanging in the balance since the company faced financial turmoil late last year. While the financial details of the acquisition have not been disclosed, the agreement is seen as a beacon of hope for the struggling brand.

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The administration of Sara Lee, led by Vaughan Strawbridge, Joseph Hansell, and Kathryn Evans of FTI Consulting, has been navigating the company through a challenging period marked by debts exceeding $50 million. Despite the financial strain, Sara Lee has remained an iconic brand and a category leader in the frozen desserts market. The commitment and dedication of both staff and consumers have played a pivotal role in sustaining the business during these turbulent times.

Reflecting on the journey, Strawbridge acknowledged the resilience of the Sara Lee team and expressed gratitude for their unwavering support throughout the administration process. He emphasised the importance of the brand’s legacy and its significance to both employees and customers alike.

Sara Lee Apple Pie

The Quinn family, synonymous with success in the Australian business landscape, has a proven track record of turning around struggling brands. Having previously founded VIP Petfoods, Klark Quinn spearheaded the rescue of Darrell Lea in 2012, orchestrating a comprehensive restructuring that revitalised the confectionery business. Under his leadership, Darrell Lea experienced remarkable growth, with earnings nearly doubling to $23 million and annual sales exceeding $110 million by the time of its sale six years later.

With their acquisition of Sara Lee, the Quinns aim to continue their legacy of revitalising iconic Australian brands. Klark and Brooke Quinn expressed their pride in restoring the Aussie-made-and-owned stamp to the Sara Lee brand, reflecting on their fond memories of enjoying Sara Lee apple pie and vanilla ice-cream with their family. While their immediate plans for Sara Lee remain undisclosed, their successful offer underscores their commitment to preserving and enhancing the brand’s heritage.

Given the Quinns’ history of successful exits, it is plausible that they may pursue a private equity exit for Sara Lee in the future once the business is back on track. Over the past nine years, the family has orchestrated exit deals totalling $610 million with Quadrant Private Equity through the sale of VIP Petfoods and Darrell Lea. The acquisition of Sara Lee marks yet another chapter in their entrepreneurial journey, reaffirming their status as key players in the Australian business landscape.

It’s worth noting that the Australian-based Sara Lee manufacturing business operates under license from the global trademark owner, enabling it to operate in Australia, New Zealand, South-East Asia, and the Middle East. As the Quinns embark on this new venture, they are poised to leverage their expertise and resources to steer Sara Lee towards a brighter future, ensuring its continued success for years to come.

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