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Fresh supplies for Cocos (Keeling) Islands as residents seek way forward for co-op

The Cocos Co-Op collapsed into voluntary administration last month, throwing supply lines into doubt. (Supplied: Rose Cummins)

In short:

Administrators say restocking Australia's most remote supermarket is just one hurdle they've faced since taking over the Cocos Co-Op last month.

Residents are set to welcome a special shipment of goods, due to arrive in coming weeks, to replenish emptying shelves.

What's next?

Defence spending has put the co-op in a stronger financial position than expected, despite its debt nearing $4 million.

Fresh supplies are set to sail 2,900 kilometres north-west from Perth to the Cocos (Keeling) Islands, after weeks without a restock left supermarket shelves going bare.

The West Island supermarket is one of several local businesses impacted by the collapse of the Cocos Islands Cooperative Society, or Cocos Co-Op, in October.

It is also the sole grocer on West Island, one of the two inhabited islands of the 27 that make up Australia's most remote territory.

Fresh supplies for Cocos (Keeling) Islands as residents seek way forward for co-op

Residents say stock has dwindled at the West Island supermarket for months. (Supplied: Rose Cummins)

The sight of dwindling inventory is not uncommon, with freight from the mainland frequently waylaid by adjustments to shipping schedules or rough weather passing through the Indian Ocean.

But multiple residents told the ABC the availability of basic goods had been in decline for months.

"It has been tricky, but we managed to get there … dealing with some suppliers," store manager Azah Badlu said.

"The important thing is that we've got bread, milk and cereal."

Mr Badlu said customers were missing "daily items" from canned goods to cheese and chocolate.

Fresh supplies for Cocos (Keeling) Islands as residents seek way forward for co-op

Mainstays have remained but some items have been in short supply on West Island, locals say. (File photo / ABC Radio Perth: Emma Wynne)

Some suppliers have severed ties with the islands over unpaid bills, during a period of uncertainty that culminated with the Cocos Co-Op entering voluntary administration.

However, the impending arrival of a shipping container full of groceries is a welcome sign.

"It is progress," Mr Badlu said.

Investigation continues

The situation is proof of the complex challenges still facing Cor Cordis, the administrators, one month on from taking over the Cocos (Keeling) Islands' largest employer.

"We're in the hands of the shipping company … but the expectation is this month, as in before the month's out, there'll be supplies," Cor Cordis partner Jeremy Nipps said.

Fresh supplies for Cocos (Keeling) Islands as residents seek way forward for co-op

The co-op oversees a wide range of island services, including ferries and a restaurant. (ABC Australia Wide: Alex Hyman)

From logistics to tourism, the 46-year-old Cocos Co-Op touched many areas of life on the tropical islands, but records have proven difficult to track down.

While the co-op is owned by the Cocos Malay community, administrators said they had not yet found a list of current shareholders.

More than a "handful" of former employees were missing from the co-op's books, meaning they and others may be owed superannuation, wages, or annual leave payouts.

The organisation's debt has ballooned past $3.75 million, a figure that does not include outstanding employee entitlements.

The circumstances leading to the co-op's insolvency remain similarly unclear.

"A lot of the sentiment around the community is like … where's the money gone?" Mr Nipps said.

"That's something I need to investigate."

'Well-overdue intervention'

West Island resident Rose Cummins said the process had been positive so far and locals were "hopeful" of a constructive path forward.

Fresh supplies for Cocos (Keeling) Islands as residents seek way forward for co-op

Rose Cummins says the administration has restored local confidence. (Supplied: Rose Cummins)

She highlighted administrators' work to make the supermarket more visibly display prices — an important measure of transparency in a place where a dozen eggs can cost $14.

"A lot of the business deals [previously] have been sort of handshake stuff," Ms Cummins said.

"For many on-island, it is a well-overdue intervention."

The prospect of a special shipment from Australia, larger than what had been seen in "quite some time", was an added bonus.

"Islanders have a way of making good from everything, but that just means we might be able to have an extra special treat on the Christmas dinner table," Ms Cummins said.

Buoyed by Defence spending

According to several people present at a community meeting last week, administrators described a better-than-expected cash flow, in part due to an influx of contractors upgrading the West Island airstrip.

In 2023, the Defence Force announced it would spend more than $500 million to accommodate bigger and more sophisticated spy military planes on the Cocos (Keeling) Islands.

Preferred contractor Fulton Hogan was said to have booked out a significant proportion of rooms at the Cocos Beach Motel, owned by the co-op, as construction ramped up.

Fresh supplies for Cocos (Keeling) Islands as residents seek way forward for co-op

Many rooms at the local motel have been occupied by contractors working on an airstrip upgrade. (Supplied: Rose Cummins)

The unexpected cash has eased fears of cutbacks to jobs and services.

Administrators are now undertaking repairs of damage caused by last year's Tropical Cyclone Anggrek, as well as other maintenance to bring a number of popular tourist spots up to "a better standard".

Cor Cordis said it had court approval to extend its convening period until April next year, when a second creditors' meeting would be held.

Another on-island update has been scheduled for the second week of February.

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