Alt-plastic innovator Great Wrap has collapsed with debts reportedly totalling $39 million, nearly six years after its launch.
According to the Australian Securities and Investments Commission (ASIC), administrators were appointed on September 17.
The company’s operations have ceased and staff have already been let go.
Co-founder and chief executive Jordy Kay confirmed the development in a LinkedIn post, saying the company’s journey had “come to a conclusion.”
He thanked supporters and said he would continue to assist administrators “to sell all equipment and materials, and to do my best to have all creditors repaid in full.”
Founded by Jordy and Julia Kay in 2020, Great Wrap was known for its compostable cling film and pallet wrap made from potato waste and other organic materials.
The business positioned itself as a sustainable alternative to petrochemical-based plastics, targeting retailers, FMCG companies and logistics providers seeking to reduce plastic waste.
Unfortunately, the founder said shifting market conditions and declining demand for compostable packaging contributed to the collapse.
“Retailers and FMCG companies shifted strategy from replacing fossil-fuel plastics with compostable alternatives to vertically integrating their own plastic recycling operations,” he explained.
“This meant the pipeline slowly subsided and demand weakened.”
Kay added that the company had been exploring expansion into the US market, but ongoing challenges in making the Australian plant profitable left it without the time or capital to continue.
“Sadly, a combination of being unable to get the Australian plant to break even meant we ran out of time and capital to pursue the US expansion,” he said.
“I hope our journey does not prevent others from trying in what can be a tough space, because if none of us tried, then we would live in a very dull world.”
- This story was originally published on Inside FMCG.
