Spring Gully turnaround 'extraordinary'

Spring Gully creditors have packed a meeting in Adelaide to hear details of a big turnaround in sales.

The food processing business went into voluntary administration this month, due to debts of more than $3 million.

Administrator Austin Taylor said support from shoppers had lifted Spring Gully's turnover to $1.5 million in the past week and he was hopeful for the company's immediate prospects.

"We think that it is sustainable and we're working with the directors and their advisers putting ... a proposal together for the creditors," he said.

"I haven't seen turnaround quite as dramatic as this and I've been doing this for 30 years. It's quite extraordinary.

"There are a number of longer-term issues which we can't really talk about that are in place that will make this thing far more sustainable and the turnover jump far more sustainable going forward. There are a number of developments happening which are all positive."

There is to be a second meeting next month, where a formal recommendation will be put on how to proceed with the business.

Gary Brown is an apiarist from Virginia and one of Spring Gully's creditors.

He said the retail sales spike would not help creditors, who remained uncertain of getting what they were owed.

"You can't get special information about who owes what and what money's where and where it's all gone and it's in the middle of nowhere," he said.

Troy Stidiford is another creditor, from Tintinara, who believes he will be better off if Spring Gully keeps trading.

"If the company keeps trading and people buy the product well it's got to keep going doesn't it? We need to keep SA people and products going, don't we?" he said.

Source: ABC News, 24 April 2013