Maggie Beer to preserve hampers business
The new managing director of Maggie Beer Holdings has made a major call on a $10 million bid in his first month in the top job.
A $10 million bid for Maggie Beer’s hampers business is not enough for the company’s new managing director.
According to a trading update sent to Maggie Beer shareholders, the company will no longer proceed with the sale of Hampers and Gifts Australia – a subsidiary that sells hampers packed with Maggie Beer and other premium goods online.
It comes after a mystery bidder put forward a $10 million offer for the business, with the company today saying offers “do not adequately reflect the value and potential of HGA”.
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In the trading update, the company said the decision followed the appointment of Chris Illman as managing director.
Illman – a well-known South Australian businessman who has worked for Bickford’s, Harness Racing SA and Treasury Wine Estates – will deliver a “new strategy”, the company said.
“Importantly, this determination followed the appointment of Chris Illman who, with the management team at HGA, has outlined to the board a new strategy aimed at delivering a clear pathway to improving HGA’s performance,” the update reads.
“Despite industry headwinds, the company believes it has a strategy to deliver significantly improved margins.
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“Accordingly, the company has made the decision to retain HGA and will not proceed with a sale of HGA.”
It follows the company unveiling its financial results in late August, showing an 8.2 per cent uplift in sales and a sharp decrease in its loss – down 60.8 per cent to $9.5 million.
Chair Mark Lindh admitted at the time that “the overall FY26 result is not where we want it to be”.
“However, the underlying business improved across a number of key financial measures with a better gross margin, a smaller trading loss, a materially reduced statutory loss, no debt and a stronger balance sheet,” Lindh said.
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