Receivership of Scott’s Refrigerated Logistics
Scott’s Refrigerated Logistics operated at 23 sites across 5 states with over 1,500 employees. The business serviced over 400 customers, moving ~47,00 pallets a week with over ~130,000 in storage. On appointment, we stabilised operations, reduced cash burn, and secured the assets. An orderly wind-down of operations and asset sale was then completed.
Related Services
RestructuringRelated Industries
Aviation & TransportIn March 2023, we were appointed Receivers and Managers to stabilise operations, reduce cash burn, and secure the company’s assets. With no viable sale as a going concern, an orderly wind down of operations and asset sale was undertaken.
At the time of appointment, operations included:
- ~1,500 employees
- 23 sites across 5 states
- servicing ~400 customers Australia wide moving ~47,000 pallets in the course of a week
- storage of ~130,000 pallets
- ongoing operation of a fleet of ~2,000 vehicles and trailers
- a complex network of integrated IT and software platforms.
How we helped
Our role
We mobilised a team of 50 people to sites across the country. We ensured a smooth transition into receivership by addressing operational issues quickly, maintaining safe operations, and providing employees with direct access to our team. stabilise operations and minimise cash burn.
Our strategy focused on:
- Stabilising operations and minimising cash burn.
- Securing and storing assets in an orderly fashion.
- Ensuring ongoing food security and minimising food waste.
- Mitigating claims against the debtor book.
- Exploring a sale of the business as a going concern, with a contingency plan for wind down and asset sales.
This approach helped mitigate reputational risk and prevented industrial action during a period of uncertainty.
Outcomes acheived
With no buyer for the business as a whole, we executed a structured wind down and asset sale. Key actions included:
- Clear and proactive stakeholder communication, including engagement with the Trade Workers Union.
- Safe clearance of customer stock from warehouses, including negotiating access for recoveries.
- Controlled exit from all operational sites and negotiation of lease disclaimers and landlord reimbursements.
The asset sale and debtor collection process achieved:
- Recovery of over 70% of the face value of debtors, despite high levels of historical claims.
- Sale of more than 2,000 trucks and trailers at over 80% of fair market value.
- Orderly closure and handback of all sites to landlords or new tenants.
All of this was achieved in a highly time-constrained environment, reducing costs and maximising returns to secured creditors.
