Break-up expected for failed transport business
05 Mar 2023 - Performance
Anchorage Capital Partners-owned Scotts Refrigerated Logistics − Australia’s largest cold-chain transport and storage business − has collapsed after the company’s receivers were unable to find a buyer.
Scotts called in receivers KordaMentha on 6 February. KordaMentha is now expected to move quickly to sell some of the company’s assets.
Anchorage Capital bought Scotts in June 2020 for $75 million in a carve-out from Eagers Automotive (ASX: APE). Scotts entered into an additional $70 million debt facility last August.
The pandemic and flood events caused disruptions to supply chains and reduced already narrow profit margins for the business which delivered to outlets of major grocery chains, Woolworths, Coles and Aldi.
When Anchorage acquired Scotts in 2020, the business operated 24 cold storage facilities, across all states except Tasmania, and had a transport fleet of around 500 trucks and 450 rail containers.
Anchorage exited five investee businesses over 2021 and 2022. Late last year the firm acquired department store business David Jones.