Administrators have taken control of Congo Brands Australia, the local distributor of the influencer-backed Prime drink, amid mounting financial troubles. Ruhe Group’s Alice Fay Ruhe was appointed as administrator on Tuesday, according to reports.
Financial details reveal deep losses
The company’s latest financial report filed with the Australian Securities and Investments Commission shows a net loss of $1.42 million in 2024. It had $7.92 million in unpaid bills and only $85,000 in cash on hand. A first creditors’ meeting is scheduled for Friday, July 17.
Prime’s rise and fall
Prime burst onto the scene in 2022, backed by popular influencers Logan Paul and KSI. The hype was so intense that Woolworths cancelled a promotional event involving the pair due to crowd control fears. The energy drink also attracted warnings from health experts over its high caffeine levels.
Legal pressure from creditors
The administration comes as Congo Brands faces a wind-up application from packaging company Orora, with a Federal Court hearing set for July 31. Wind-up applications are typically brought by creditors seeking to recover unpaid debts. Congo Brands and Ruhe Group have been contacted for comment.
