Australian’s largest tech startup community, Fishburners, has entered voluntary administration.

Professional services giant KPMG confirmed on Thursday that it has been appointed administrator of the nonprofit “to facilitate a strategic restructuring of the organisation”.

An administration notice has also been published by the Australian Securities and Investments Commission (ASIC).

Board cites rental debt and ‘operating losses’

The Fishburners board said it decided the change was needed “following failed efforts to resolve long-standing rental legacy debt accumulated under the State-led Sydney Startup Hub program, and subsequent operating losses”.

The board added that it wanted “to achieve a sustainable future and continuity for the thousands of tech entrepreneurs who rely on Fishburners’ support services”.

“The board have been actively engaging in consolidation and investment discussions, which the administrator will now pursue,” it said in a statement.

KPMG Australia’s partner in charge of the restructuring, Gayle Dickerson, said “Fishburners has been a pillar of the Australian startup ecosystem, fostering innovation and entrepreneurship for over 15 years”.

“We will seek expressions of interest from parties within the innovation and technology sectors and work with all stakeholders, including the board, employees and founders, to maximise the outcome,” she said.

Fishburners “will continue to trade as usual” while KPMG assesses the organisation “in tandem with an accelerated sale and recapitalisation process”, the firm said.

The first Fishburners creditors meeting is expected to take place on 18 May.

The Fishburners story

Fishburners was founded in 2011 by tech entrepreneurs Mike Casey and Pete Davison.

It has since provided more than 35,000 entrepreneurs with networking opportunities, mentorship, and coworking spaces.

Its alumni have included founders from successful companies such as Koala, HyperAnna, MadPaws, Jayride, and Car Next Door.

Fishburners began as a coworking space on a single floor of an office building in Sydney’s CBD which filled 50 desks in its first month, according to the organisation.

In 2016 Fishburners came to occupy the entire building at 608 Harris Street, before relocating to the Sydney Startup Hub in 2018.

The organisation has since moved to two new spaces and been named an anchor partner of the NSW government’s Tech Central precinct, following the relocation of Sydney Startup Hub.