South Ave seltzer brand collapses after tax audit reveals $13m debt
Summarised from 2 outlets · Updated 11 Nov, 11:32 · Archive
South Ave, an Australian alcoholic seltzer company, has entered voluntary administration after a tax audit revealed $13 million in unpaid excise duties.
South Ave, a popular South Australian alcoholic seltzer brand, has entered voluntary administration after a voluntary tax audit revealed $13 million in unpaid excise duties. The company, founded in 2021 by Reno Marrasso, Scott Grieve and Sophie Sexton, generated almost $19 million in annual revenue, with the majority of sales coming from South Australia, Victoria, Queensland and Western Australia. The collapse came days after the company celebrated its fifth birthday.
Marrasso said the company initially believed it was in credit with the ATO on excise duties, prompting the decision to conduct a voluntary audit. The audit uncovered the substantial debt. The company then agreed to a three-year repayment plan and made progress paying down the obligation, with significant payments made in the preceding 12 months.
However, Marrasso said that once the company filed for voluntary administration, the ATO changed the repayment deadline from three years to 12 months. He stated that the shortened timeframe was not feasible as it would 'completely destroy the cash flow of the business', leaving the company with no choice but to pursue administration.
How it is being reported
- Beloved seltzer brand South Ave plunges into voluntary administration after tax audit backfiresThe Aussie pre-mix and seltzer company was plunged into administration after a voluntary tax audit backfired, revealing millions in unpaid debt.Perth Now · 11 Nov, 11:02
- Beloved seltzer brand South Ave plunges into voluntary administration after tax audit backfiresThe Aussie pre-mix and seltzer company was plunged into administration after a voluntary tax audit backfired, revealing millions in unpaid debt.The West Australian · 11 Nov, 11:02
In this story: South Ave · Reno Marrasso · Scott Grieve · Sophie Sexton · South Australia · Australian Taxation Office
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