The popular healthy fast-food chain Mr. Potato has entered liquidation after its management company, Mr Potato Management Pty Ltd, was dissolved by the Federal Court due to unpaid tax debts exceeding $550,000.
Founded in South Australia and known for its baked potato bowls, the company had been rapidly expanding across Australia. On July 4, the court appointed liquidators from Clifton Hall after an application by the Australian Taxation Office (ATO).
Documents show Mr Potato Management owed $552,409.34 in unpaid taxes, and the ATO had made multiple attempts to recover the debt before taking legal action.
“This is a clear case of a company trading while unable to meet its obligations,” stated liquidator Stephen Dixon from Clifton Hall, who is investigating potential insolvent trading.
Franchisees are in shock, facing uncertainty about their futures. One anonymous former franchisee reported, “We had no idea it was this serious. We thought everything was fine.”
The brand had gained a health-conscious following, with locations in various states and visibility through associations with AFL star Travis Boak and influencer Laura Henshaw, who have not commented since the news broke.
Liquidators are reviewing the company’s finances and have sent formal notices to creditors, with Dixon encouraging them to contact the company directly.
Mr. Potato Management had been experiencing financial stress for several months, and industry sources indicate it may have continued trading despite signs of insolvency, which could lead to further legal issues.
It remains uncertain whether the Mr. Potato brand can be salvaged or if individual franchisees will be able to operate independently, raising broader concerns about financial transparency within the franchising industry. Stakeholders will closely monitor the situation for any emerging lessons.
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