School lunch provider Libelle Group has been placed into liquidation. Photo: RNZ / Louise Ternouth
Libelle Group, a major provider of school lunches that went into liquidation this week, has agreed to sell its lunch operation to Compass Group NZ.
Compass had contracted with Libelle previously to deliver 125,000 meals a day as part of the Ka Ora, Ka Ako programme.
"The liquidators are pleased to have been able to reach an agreement with Compass that will see the continuity of the Ka Ora, Ka Ako Healthy School Lunches programme," said liquidator David Webb in a statement.
"We appreciate the combined efforts of the Compass and Libelle teams in continuing to provide school lunches with minimal disruption while we negotiated a solution for the business."
Libelle Group is part of the School Lunch Collective, alongside Compass Group New Zealand, Gilmours, and other partners.
Paul Harvey, managing director of Compass Group New Zealand, said the teams would ensure continuity of operations.
"Since the unexpected announcement on Tuesday, we have ensured continuity of operations, with over 500,000 meals delivered this week and 97.3 percent delivered on time. This demonstrates how resilient our people are.
"We are now looking forward, ensuring everyone is supported through this transition."
Employees have been notified of the conditional sale this afternoon.
The liquidators also concluded that it is "no longer viable" to continue trading Libelle's Champion Tuckshops division. These business units closed effective today.
"We appreciate this was very difficult news for the Champion Tuckshops' and other non-school lunch business' employees to hear," Webb said.
The revamped school lunch programme launched this term has continued to be controversial, with complaints over meal service and quality.
