Freer Foods Pty. Ltd. of Brisbane, Australia, is closing its doors after what it called a costly bid to find market acceptance for nearly fat-free potato chips called "s'OK."
Ten Queensland growers are left without payment of about A$1.5 million. That doesn't include the input costs to grow the crop. The money was owed for potatoes supplied to the company over the last 12 months.
The Queensland government provided A$205,000 in business development grants to Freer and the federal government about A$80,000.
Queensland Fruit and Vegetable Growers CEO Jan Davis said the company was officially in liquidation.
Davis said the growers were disturbed and distressed and it was a significant blow to growers who work during the best of times on very leans margins.
The QFVG said the collapse showed the need for the state government to legislate to protect farmers when companies fail.