Riot Foods creditors given three options for future of the snack food business

Riot Foods founder Ryan Kamins, right, and television personality Art Green. Photo / File

Creditors of administrated snack food company Riot Foods will this afternoon have the final vote on the future of the business.

This morning shareholders attended a watershed meeting in Auckland where three options for the Auckland manufacturer's future were discussed.

The Herald was not allowed to attend the meeting but McDonald Vague administrator Iain McLennan said the meeting outlined options for Riot Foods.

There are three scenarios for an outcome, McLennan said, which creditors would vote on this afternoon. They include: placing the company into liquidation, handing the business back to directors Trevor Kamins and Bachelor star Art Green, or establish a deed of company arrangement between creditors and the company's directors.

McLennan said he had no further comment to make until an outcome had been decided on this afternoon.

Green told the Herald the watershed meeting was "positive for shareholders". He had no update on the state of the business or further comment to make.

Riot Foods was placed in voluntary administration in early February after damage to its manufacturing plant left it desperate for cash.

Administrators McLennan and Peri Finnigan of McDonald Vague have since been working on sale options for the owner of the CleanPaleo and Poppy & Olive brands.

Riot was founded by Ryan Kamins, former Black Cap Mitchell McClenaghan and television personality Art Green in 2014.

Early last year it raised $1 million in equity through crowdfunding platform PledgeMe from 157 investors and planned to raise $1m more the same way a year later. But in October the company revealed it was facing significant challenges, saying damage to its Ascot Rd facility caused it to miss its production date.

The receivership of major client NZ Deli was also an issue.

Kamins told Riot shareholders in a letter that it needed to raise $1m in two weeks, or sell the business. He later resigned as chief executive and director in November, citing alcohol addiction.

According to the administrator's first report, Riot Foods owed a combined $6m to shareholders and creditors, with "just under" $1m owed to creditors.

Companies Office records show there are 159 shareholders in Riot Foods.

Trevor and Jenny Kamins, Ryan's parents, hold an almost 55 per cent stake in the company. Ryan holds a 13.4 per cent stake in the company and Green a 3 per cent stake.

Other investors include entrepreneur Shane Bradley, founder of GrabOne, who has a 9.3 per cent shareholding in the company.