Only 3 years later, Scott's Refrigerated Logistics has gone into voluntary administration.
👉 Background: Scott’s Refrigerated Logistics is a transport provider with over 500 prime movers and 1000 trailers in its network. It's largest clients include Coles, Aldi and IGA.
👉 What happened: Scott's was acquired for $75 million by Anchorage Capital in 2020 - the same Anchorage Capital that just acquired David Jones. But now, only 3 years later, Scott’s has gone into voluntary administration.
👉 What else: Between the increase in petrol, tolls, electricity and an inability to pass on these costs, they reckon the company has become unsustainable.
💡 Negotiations between large retailers and small transport companies can be complex and challenging. As we know, the power dynamics between the two can be significantly different.
💡 In the transport industry, 60 per cent to 70 per cent of the companies are made up of smaller players. So they don’t have the upper hand in commercial discussions with retailers and supermarket players.
💡 According to the National Road Transport Association, the average profit margin for the industry is 2.5 per cent, so it’s no surprise that companies like Scott's are feeling the squeeze.
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