09/09/2014 - 14:59

Mushroom sale sees significant interest

09/09/2014 - 14:59

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Receivers have said there are more than two dozen potential buyers in the sale of WA’s largest locally owned mushroom farm, Jongro, with expressions of interest closing this week.

Mushroom sale sees significant interest
Mushroom production requires constant investment for efficiency.

Receivers have said there are more than two dozen potential buyers in the sale of WA’s largest locally owned mushroom farm, Jongro, with expressions of interest closing this week.

Jongro, trading as Crown Mushrooms, entered into receivership in August.

McGrath Nicol’s Rob Kirman and Norman Oehme have been appointed receivers for the 42-year-old family owned business, which will trade until a buyer is found.

Trevor Johnson founded the business in 1972 and it has remained in the hands of the Johnson family since.

The company holds six hectares of property in Wanneroo, with two residencies and more than 1,000 square metres of mushrooms.

Production is between 25 and 30 tonnes per week, according to the company’s website, including portobello and white mushrooms, with 140t of fresh compost produced each week.

Mr Kirman said the company has struggled to be profitable for some years.

“It’s very labour intensive,” he said.

Mushroom growers need to constantly reinvest in new product to stay efficient, he said, so there was a constant production.

The operation is 24 hours a day, 365 days a year.

Crown’s 85 employees have been retained.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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