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*Mike Ramey

**The Tasmanian Government has intervened in the troubles surrounding local water and juice producer the Hartz Group, in hopes of securing the future of one of the island state’s most iconic brands. *

Hartz markets the Mountain Maid line of juices – a long established brand in mainland Australia – but its core brand is Hartz Tasmanian Mineral Water, billed as “the best Australian sparkling mineral water.”

Founded by Ron Powell in 1969, and taken over by his son Stephen in 1980, Hartz was placed in “controllership” earlier this month by Business Expansion Capital (BE), which claims it is owed A$1.4 million (US$1.3 million) by the company.

BE appointed Melbourne lawyer Michael Gawler to administer Hartz, while another creditor, Bibby Financial Services, appointed receivers to recover debts of about A$1 million (US$929 million).

Advertisements were placed in Tasmanian and mainland media, inviting offers for the group’s assets. But Gawler also restarted production at the group’s plant in the island capital, Hobart – holding a “garage sale” of drinks at discount prices to help raise working capital.

“We are well aware Hartz is a famous name in Tasmania and all over the mainland,” he told the island’s daily newspaper, the Mercury. “Our hope is that we can put the company into a position where new investors are interested in acquiring it.”

Hartz owner Stephen Powell, who said he had already sold his A$3.1 million (US$2.88 million) house to help pay off the group’s debts, accused BE of acting prematurely. According to Powell, the group’s financial problems stemmed from its acquisition of Mountain Maid juices in 2002, and the difficulties of fruit supply and logistics after production was shifted from the mainland to Hobart.

But Powell said he was also seeking new investors who would be able to keep the business running. “I have built this company up over 30 years, and I will not let it be destroyed without a fight,” he told the Mercury.

Today (18 April), it was revealed that Tasmania’s Department of Economic Development and Tourism has also stepped into the dispute. Although the department is not yet offering financial help, it hopes to mediate between Powell and the company’s creditors.

“I understand there’s a lot of interest in the sale of the business, but also the owner of the business is quite interested in keeping the business going forward himself,” the department’s Secretary, Norm McIlfatrick, told the Mercury.