Meal delivery company collapses
Food delivery company Five Point Four has gone into administration, leaving customers without prepaid meal orders costing as much as $145.
The health food delivery company, spruiked by social media influencers and founded by Brisbane's former young entrepreneur of the year Ben Doolan, told awaiting customers its products would not be sent.
Five Point Four lodged a notice of administration to the Australian Securities and Investments Commission (ASIC) on Friday after informing customers on Wednesday their meals won't be arriving.
"In the face of increasing competition and our cost to serve, we have made the really difficult decision to stop taking orders with immediate effect as of today," the company said in an email sent to customers.
"For our customers with future prepaid orders, the customer service team will be working diligently to process your refund and will be in touch over the coming days.
"Thank you for being part of the 5.4 family and wish you all the best in reaching your health goals in the future."
One customer told the ABC he was expecting his meals for the week to arrive on Wednesday for a prepaid cost of $145 before receiving the email.
"It was really irritating, they just stopped the service," he told the national broadcaster.
"Surely they could have seen it coming and shut down with some notice so people weren't put out?"
Five Point Four's now closed down Facebook and Instagram accounts had more than 200,000 and nearly 30,000 followers respectively, though its website is still live.
The company was founded in 2013 by Mr Doolan who went on to win a host of awards, including Brisbane Lord Mayor's small business growth award, and place 18 on BRW fast starters top 100 in Australia.
His LinkedIn page now lists his role at Five Point Four as an advisory board member and director for the company his account says was "one of Australia's fasting growing food and wellbeing companies".
His LinkedIn account also claimed the company's annual revenue had exceeded $12 million within three years of operating.