The Australian company behind the distribution of the viral Prime energy drink has entered voluntary administration after being left with almost $8million in debts, or £6million, and less than $85,000 in the bank.
Congo Brands Australia, the Melbourne-based business responsible for bringing the influencer-backed drink to Australia, entered voluntary administration on July 7.
Alice Ruhe, of The Ruhe Group, has been appointed as administrator, according to a notice published by the Australian Securities and Investments Commission.
The collapse marks a sharp reversal for a business that helped fuel the popularity of Prime, the energy drink launched by YouTubers Logan Paul and KSI.
The beverage became a major hit after its launch in 2022, with demand surging among young consumers, including schoolchildren in Australia.
Financial documents show Congo Brands Australia owed $7.92million when it entered administration, while holding just $84,855 in cash.
The company’s most recent financial report, lodged in September 2025, also revealed a significant decline in sales.
Revenue fell from $31million to $14.5million over the course of a year.
Prime energy drink Australia: Distributor collapses into administration with almost $8million in debt
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The downturn reflects a broader slowdown for the Prime brand, with UK accounts previously showing turnover falling by more than 70 per cent and profits dropping by more than 90 per cent as demand eased.
Congo Brands Australia recorded a net loss of $1.42million during the 2024 financial year.
Its inventory value also fell sharply, declining from $28.9million in 2023 to $1.7million the following year after including a $4.57million write-down.
The Australian business is directed by Congo founder Max Clemons and Peter Davison.
Company filings state that the Australian operation had relied on financial support from its Kentucky-based parent company
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The financial report said the parent company had provided a “commitment to support the company for the foreseeable future”.
Creditors are scheduled to hold their first meeting on July 17 to discuss the company’s future.
The business is also facing legal action from packaging company Orora Group, which filed a wind-up application in the Federal Court in June.
The matter is due to be heard on July 31.
Wind-up applications are typically brought by creditors seeking to place a company into liquidation over unpaid debts.
Alongside Prime, Congo Brands Australia also distributes other influencer-backed products, including Lunchly, a snack brand launched with YouTuber MrBeast, and pet food brand Animal Love.
The administration process will determine the future of the Australian business and its portfolio of consumer brands.
GB News has contacted Prime for comment.