The court deliberation to determine the liquidation took less than two minutes on Friday, reported The Courier Mail.
Earlier this year, former franchisees of the chain revealed the desperate measures they were driven to after their stores failed to turn a profit.
Some were forced to sell their homes while others considered legal action.
Mr Potato, a healthy potato themed chain eatery, closed its final Queensland shops at Broadbeach and Mermaid Waters on the Gold Coast in February.
A confidential email obtained by the Daily Mail Australia confirmed Davis stepped down from her role as co-CEO of Mr Potato in June last year.
‘As a CEO, building this business from the ground up over the last five years has been the most challenging, yet rewarding, adventure of my life,’ she said.
‘From DIY-ing our first ever store, to baking our first potato to creating an Australian-wide spud empire, it’s been a wild ride.’
In the email, Davis said Hoffmann will remain as the sole CEO while she will take the role of ‘head of brand’.
The number of franchises had fallen from 13 to just four by June this year, but the founders have spent most of the year on a national food truck tour to promote the brand.
Davis sparked fury earlier this year when she posted on Instagram her intention to seek $50,000 investment for a $4million tropical resort.
The Miss Universe model and Hoffmann acquired a 100hectare slice of beachfront land on the Tongan island of Nomuka where they plan to build an ‘eco resort’, dubbed Oseni.
According to the couple’s Instagram, their plans for the resort will include ’30 private, luxurious and eco-friendly villas’ on the remote beach.
The couple also plan to build a seaplane wharf to help ferry guests from mainland Tonga to the island getaway.
A spokesperson representing affected franchisees told Daily Mail Australia in February potential investors should be warned-off buying into Mr Potato and the proposed Oseni resort.
‘Authorities need to look closely at what they’re doing,’ the former franchisee said.
‘We want to come forward in the hopes no one else in the future buys into the Mr Potato brand or invests in their upcoming travels and resort build.’
The whistleblower said franchisees were hung out to dry by Davis and Hoffmann who they claim failed to provide adequate training or assistance and were hard to reach when issues arose.
The ex-franchisee also claimed Hoffmann, a former Adelaide 36ers NBL player, owed money to suppliers and other creditors and constantly requested franchise operators pay their royalties.
‘We invested and loss our time, health, mentality and family and we even had to borrow money to support a non-profitable business while trying to keep a roof over our heads,’ he said.