Scotts enters liquidation
Transport and logistics company Scott's Refrigerated Logistics has gone into liquidation.
Following a creditors' meeting this week, McGrath Nicol, the appointed administrator, said that winding up all six companies that made up the Scott's group was the only viable way forward.
Scott’s is owned by Anchorage Capital Partners, and was one of the largest logistics firms in the country - a key supplier to retailers including Coles, Aldi and IGA - until it collapsed in late February.
The group was recording monthly losses of $8 million on average from 2021, with a loss of $36 million in the 2021–22 financial year, a loss of $87 million in 2022–23, and $62 million in the current financial year.
The company may have been insolvent nine months before its collapse, according to the administrators.
“Further investigations by an appointed liquidator will consider the headroom in available lending facilities provided by ScotPac and ACP, and the extent to any formal agreements with creditors to extend trading terms, with the aim of establishing more precisely the date that the Scott’s Group became insolvent,” an administrator’s report reads.