Coconut oil business forced to shut doors
ADMINISTRATORS are counting the barrels and boxes of coconut oil at a Varsity Lakes warehouse after Nature Pacific closed on Monday.
Australian Securities and Investment Corporation documents reveal the Gold Coast-based business has gone into administration.
The Bulletin understands as many as 28 people could be out of work.
Administrators inside the warehouse confirmed the business was closed but would not comment further.
Ken Sigrah and Stacey King founded Nature Pacific in 2004 to market virgin coconut oil grown and harvested in Fiji.
The company started in a garage and began selling scented body oils based on traditional blends made in Fiji.
Ms King said Nature Pacific grew to a $5 million business mostly employing family and members of the Banaban community living in Australia.
“In February 2016 Fiji was devastated by one of the biggest cyclones in Fiji’s history while in Australia there was a sudden influx of cheaper grades of coconut oil flooding the Australian market, which led to the company facing financial problems,” Ms King said in a statement.
“It was decided to seek investment.”
She said that in June 2017, Ms King and Mr Sigrah had accepted an investment from Future Asset Management International, which gave it 85 per cent of the coconut oil company.
That was split, with 60 per cent going to Natural Health and Education Pty Ltd, directed by Jeffrey Chung Shuen Thai – the previous name of Malaysian transgender pop star Jessie Chung – as well as Gold Coast businessman Gary Scallan and Gregory Jackson.
Jessie Chung is signed onto Mr Scallan’s music company, Future Entertainment and Music Group Pty Ltd.
Mr Scallan’s other company, The Medical Supplies Group, owned 25 per cent of the business while Ms King and Mr Sigrah were left with 15 per cent.
Ms King said it was at this time they gave up control of the company.
She said she was shocked when the company went into administration on Monday.
Ms King told the Bulletin she did not put the company into administration. She said this was done by Future Asset Management International.
But Future Asset Management International founder Mr Scallan said his company was not in control of the business but was a shareholder.
“Obviously the records don’t show that (FAMI controlled the business), we invested in a business that was in distress,” he said.
ASIC documents reveal that Ms King was the sole director up until June 26 after Mr Sigrah ceased his position in April. Another director, Warren Bingham, left in March.
“The intention was to support her because we loved the story of Banaban, which was to help a group of people,” Mr Scallan said.
The Banabans have been called “the forgotten people of the Pacific’’, a minority group that originated on islands near Nauru.