Meal delivery start-up CoLab collapses affecting 150 restaurants

Gourmet meal delivery start-up CoLab has collapsed.

After failing to secure capital to keep it afloat, the popular Australian business formerly known as ChefPrep went into voluntary administration just two years after it was established.

The brainchild of Elle Curran and Josh Abulafia delivered ready-to-cook meals from 150 restaurants around Sydney.

Also on the menu were gourmet pantry food and drinks, fresh produce, frozen ready meals and gift packages.

CoLab merged with Melbourne rival ChefPrep seven months ago and was backed by entrepreneur and Yellow Brick Road founder Mark Bouris.

It had previously secured $3 million in funding from venture firms Artesian Ventures and Berlin-based Global Founders Capital.

The CoLab founders are now searching for a buyer, despite a lack of interest from investors in the latest funding round.

“The business was in acquisition discussions with a number of businesses and EY was appointed as administrators to manage the sales process and to assess options for restructuring the business,' Curran and Abulafia said.

“We appointed EY as administrators when it became clear that we were unable to continue acquisition discussions on the current runway.

“We have been working closely with EY throughout the process, and we are confident in their ability to achieve the best result for the business, employees and creditors.”

16 staff across Sydney and Melbourne are set to be affected.

“Following stabilisation of the business, we are conducting an urgent expression of interest campaign to determine whether a strategic fit for CoLab can be identified,” EY administrator Morgan Kelly said.

“The current environment is challenging for start-ups, but the voluntary administration regime is designed to maximise the chances of a business continuing to exist.

“We intend to explore all options for CoLab and its stakeholders and will keep everyone informed as the administration progresses.”

CoLab is one of several businesses in the food delivery start-up sector that have floundered. Send, Delivr, Deliveroo, and Voly have all collapsed resulting in the loss of hundreds of jobs.

Irit Jackson, 11^th April 2023