Logistics nightmare for 1500 workers as Scott’s goes into receivership

Australia’s largest cold chain refrigeration logistics company has gone bust, meaning about 1500 workers face an uncertain future after their employer went into receivership.

Scott’s Refrigerated Logistics, which counts supermarket giant Coles among its grocery and food and beverage clients, entered voluntary administration on Monday before KordaMentha was appointed receivers.

The business provides mobile refrigeration and temperature controlled warehousing facilities.

Scott’s was acquired by private equity film Anchorage Capital Partners in June 2020 for about $75 million, according to the Australian Financial Review.

Anchorage had initially appointed McGrathNicol as voluntary administrators, before secured creditors for Scott’s appointed KordaMentha late on Monday.

KordaMentha partner Scott Langdon said the advisory firm was seeking support from all Scott’s customers to give the business “the best chance of being sold to a new long-term owner”.

“We anticipate a high level of interest in this business and its assets, given its significance in the cold chain supply system in Australia,” he said.

The company’s collapse comes amid a period of protracted supply chain insecurity across Australia, following labour shortages driven by the COVID-19 pandemic, multiple natural disasters, rising fuel costs and the war in Ukraine.