Pro-Pac Packaging enters administration, seeks buyer amid financial strain

AUSTRALIA – Melbourne-based Pro-Pac Packaging Group, a key player in flexible and industrial specialty packaging, has entered voluntary administration as it searches for a buyer to rescue its operations. 

The ASX-listed company appointed McGrathNicol Restructuring partners on October 23, 2025, to oversee the process for its 23 Australian entities and two in New Zealand. 

Administrators Keith Crawford and Rob Smith will handle Australian affairs, while Andrew Grenfell and Kare Johnston manage those in New Zealand.

The move comes after prolonged challenges in a competitive market.

In the first half of fiscal year 2025, revenue from continuing operations dropped 10.1% to US$142.9 million, with pre-tax losses widening to US$12.8 million from US$5.5 million the previous year. 

A major factor was the loss of a key Middle East client, which erased US$13.6 million in sales.

Even without that impact, flexible packaging volumes fell three percent due to tough conditions and weather disruptions affecting agriculture in Australia and New Zealand.

Pro-Pac, which supplies custom solutions to food, beverage, health, agriculture, and manufacturing sectors, had initiated a strategic review in March after a difficult full-year 2024.

An August 29 update revealed ongoing talks with multiple bidders, but no deals reached finality.

That same day, major shareholder Bennamon Pty Ltd, controlled by Raphael Geminder, extended a secured loan of up to US$3 million. 

ASX trading in Pro-Pac shares halted automatically from September 1 pending full-year accounts.

Leadership saw changes recently, with CEO Ian Shannon stepping down as a director on October 10 while retaining his operational role, and company secretary Kathleen Forbes resigning on October 21, duties shifting to Shannon on an interim basis.

In a statement to the ASX, Rob Smith noted that the team is working quickly with stakeholders to secure a sale or recapitalization of the entire business or its units. 

He added that efforts focus on preserving jobs for the workforce and maintaining production of packaging for local and global clients.

Creditors’ first statutory meeting is set for November 3. 

The administration process has triggered further steps, including a deferral of financial reporting and annual general meeting obligations until October 2027 or the end of external oversight, whichever occurs first, under ASIC relief announced on October 28. 

This pause allows administrators to prioritize restructuring without immediate audit demands. 

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