Press Release: Infants’ Friend Pty Ltd enters liquidation

On 24 February 2021, Adam Ward of Worrells Solvency and Forensic Accountants was appointed liquidator of Infants’ Friend Pty Ltd (Infants’ Friend).

Infants’ Friend is Australian-owned and manufactured, relieving babies of colic, wind and teething discomfort since 1935[1]. The company has been trading since June 2003 and sold their products (predominantly Infants’ Friend Oral Liquid) online and via third-party retailers in leading supermarkets and pharmacies across Australia.

On 24 December 2020 the Therapeutic Goods Administration (TGA) concluded that the oral liquid did not meet regulatory requirements due to dosage labelling regarding one of its ingredients. Following the TGA investigation, Infant’s Friend voluntarily recalled its product.

The decision to appoint liquidators was made in view of all available options to deal with the sudden change in business viability. Infants’ Friend does not have any employees.

Mr Ward said, “The company has enjoyed a long-history of success with its suppliers and of course customers. Unfortunately, the immediate product recall forced the company to become insolvent in a very short space of time. The directors are naturally devasted to be in this position after so many years of happy customers and no complaints.

At the time of my appointment, the known claims against the company exceed $400,000 however that figure is likely to change if recall and damages claims increase.”

The teams at Worrells are now working to establish the company’s financial position and are asking creditors to lodge any proof of debts via its website worrells.net.au.

The TGA are advising customers to discontinue use and to contact the retailer they purchased the product from to arrange a return and refund. Customers who purchased directly from the company on its website and may have a recall or damages claim are encouraged to contact Worrells Ipswich office via email at ipswich@worrells.net.au.

The first meeting of creditors is scheduled for 31 March 2021.

Worrells has 32 offices nationally and 26 partners, across Qld, NSW, ACT, Vic, SA, and WA. Worrells has been providing solvency management, insolvency administration, and forensic investigation services for over 48 years.

—ENDS—

Contact:
Adam Ward
Partner, Worrells Ipswich
adam.ward@worrells.net.au

 

For more information:
https://infantsfriend.com.au/recall/
https://www.tga.gov.au/alert/infants-friend-oral-liquid

[1] Infants’ Friend oral liquid is a ‘grandfathered’ medicine, which means that it was available in Australia prior to 1990. As a grandfathered medicine, the TGA has not evaluated Infants’ Friend oral liquid for safety, quality or effectiveness.



Author details

Adam Ward

Adam Ward joined Worrells in 2001 and became a Partner in 2011. Adam works exclusively in the area of insolvency. Adam leads a production team in the Worrells Ipswich and Worrells Toowoomba offices. Adam is a Registered Liquidator, a Trustee in Bankruptcy, a member of Chartered Accountants Australia & New Zealand (CA) , CPA Australia (CPA) and the Australian Restructuring Insolvency & Turnaround Association (ARITA). Adam has also completed the Australian Institute of Company Directors Course.

T: (07) 3280 6201 E:

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