The collapse of Australia’s largest cold chain transport operator, Scott’s Refrigerated Logistics, has been called a “tragedy” by the Trade Workers Union (TWU).
The company, which was acquired by private equity firm Anchorage Capital Partners in June 2020 and lists Coles and Aldi amongst its clients, has now entered into voluntary receivership with KordaMentha, as the investment firm attempts to find a new owner.
The TWU say they are working with KordaMentha to ensure the hundreds of transport workers affected by the decision are prioritised through the administration process.
Michael Kaine, National Secretary of the TWU, said that retailers are reaping the gains from razor-thin margins while operators and drivers collapse under the strain.
“We urgently need reform in transport to ensure wealthy clients at the top of supply chains are accountable for fair, safe, and sustainable transport operations for the freight of their goods.”
The union states that the operator is one of many casualties of cost-cutting in transport supply chains.
Scott Langdon, partner at KordaMentha, told ABC that workers would stay in their jobs throughout the process.
“We facilitated the payment of suppliers yesterday and the 1,500 employees are getting paid tomorrow, on time, and we are immediately commencing a sales process to find a new owner for the business.”
Langdon said the business would continue as normal for the foreseeable future as the investment firm runs the sale process, which has already seen numerous parties reach out to KordaMentha.
To stay up to date on the latest industry headlines, sign up to the C&I e-newsletter.