Pie Face is closing 18 company-owned stores and two franchised outlets. The remaining 12 corporate stores and 39 franchise units are at this stage still operating.

Eight of the company owned outlets are in New South Wales, five are in Victoria, three in Queensland and one in Western Australia.

Administrator Jirsch Sutherland made the announcement after assessing the company’s financial position following its entry into voluntary administration a week ago.

Sule Arnautovic, managing partner of Jirsch Sutherland and joint administrator of the Pie Face companies said “There has been some necessary rationalisation, and as a result of these closures, approximately 130 part time employees will have their employment terminated. The closures and terminations are being made in order to preserve the ongoing business.”

Jirsch Sutherland partners Sule Arnautovic and Rod Sutherland were appointed as joint administrators on Friday 21 November 2014.

According to BRW, insolvency company Ferrier Hodgson has been appointed as receiver over a number of assets, including the agreement between Pie Face and US casino king Steve Wynn, who invested significant funds in the US pie business. 

The news report also indicates other major investors in the brand are confident the company will emerge from its troubles.

Asking the question what went wrong, the article says the failure has been blamed variously on the high costs of rent, goods and franchisor royalties, and expanding the network rather than focusing on selling food.

One franchisee reportedly commented on the collapse of the brand, telling BRW: “Customers are more health-conscious and our prices are too expensive. When they were in growth stage, they opened up a lot of stores that didn’t make sense.”

The Australian reports that Pie Face in the US is now in a legal stoush with a New York builder who claims the fast food company has unpaid bills. Pie Face denies the charges.