Creditor says they were blindsided by liquidation of Libelle

The small businesses paying the price for free school lunches after the collapse of the main provider Libelle Group. Libelle, which made meals for the government's revamped programme, has gone bust owing more than $14 million to dozens of creditors. Liquidators Deloitte said one of the failed company's biggest problems was scaling up too fast going from making about 17,000 lunches to more than 125,000 a day. Hamilton Company Echo Automation worked on Libelle's production line equipment where the lunches were packaged.Owner Sean Donovan told Lisa Owen he was blindsided by it going bust.