Gum Tree Pies has entered a deed of company arrangement with its creditors, retaining business assets and local staff in Bright, Yackandandah and Wodonga as they survive liquidation.

Appointed administrators met with creditors of the business last week to decide on the future of the bakery, which entered voluntary administration on 8 April, reporting around $1m in debt.

Three options were tabled to creditors at the meeting - whether the company execute a deed of company arrangement (DOCA), the administration should end, or the company be wound up.

They voted to execute the proposed DOCA, recapitalising the company and safeguarding the roles of more than 55 employees with Gum Tree Pies.

Bakery co-owner Melinda Nedziak said it was an incredible outcome for her and her husband Sebastian, who would continue to serve their communities the pies they love.

 ”They [ the creditors] were incredibly grateful to see how many people came out in support of us,” she said.

“Keeping our staff was something that was really, really important to us and obviously became really important to those working with us.

“We are so very grateful.”

Rising costs impacting the businesses’ financial capability along with the pandemic, summer bushfires, floods, and police operation impacting tourism in the area were cited as reasons for the popular pie shop entering administration.

Ms Nedziak along with husband Sebastian, have been on the local business scene since 2007 when they opened a café.

When Sebastian was convinced to start making his own pies in 2010, they went gang busters at markets across the state paving the way to open Gum Tree Pies in Yackandandah in 2016.

The bakery would open stores in Bright and then Wodonga from there.

A bakery was opened in Beechworth in 2019 but closed four years later.