High-end grocer The Essential Ingredient has collapsed into administration after failing to recover from the impacts of the Covid pandemic.

PwC, which has been appointed as administrator, will keep the gourmet grocer’s stores open as it seeks a buyer, the Australian Financial Review reported.

“The legacy of stock losses during the Covid closure and higher operating costs has all taken a toll on profitability,” said Robert Ditrich from PwC.

Founded in 1986, The Essential Ingredient has three stores – in Melbourne’s Prahran and South Yarra and on Sydney’s North Shore – as well as a large online operation.

Earlier this year, the company rebranded two other outlets in Canberra and Orange.