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Scott's Refrigerated Logistics in receivership with question mark over 1,500 jobs

This article was originally published via https://www.abc.net.au/.


Scott's Refrigerated Logistics entered voluntary administration on Monday.(Facebook: Scott's Refrigerated Logistics)


Key points:

  • Scott's Refrigerated Logistics entered voluntary administration on Monday

  • The company has depots in every mainland Australian state and employs about 1,500 workers

  • Transport Union bosses are blaming "razor thin" operating margins for the company's demise


The National Transport Union has labelled the collapse of Australia's largest cold chain refrigeration logistics company a "tragedy".


Scott's Refrigerated Logistics, a national freight company that counts supermarket giants Coles and Aldi among its clients, has entered voluntary administration with KordaMentha appointed receivers.


As a result, the fate of about 1,500 workers hangs in the balance.


The company has warehouse facilities in all Australian mainland state capital cities with depots in many other regional centres, according to its website.


Transport Workers Union (TWU) national secretary, Michael Kaine, said transport companies like Scott's were struggling under razor-thin margins.


"This is another tragedy of the untrammelled commercial power at the top of transport supply chains," he said.

There was no action at Scott's freight yard in Wodonga following the news.(ABC Goulburn Murray: Callum Marshall)


A Coles spokesperson said the company was aware of the challenges Scott's Refrigerated Logistics was facing.


"We are working hard to provide support and minimise the impact this might have on our customers and product suppliers," the spokesperson said.


The ABC understands that Woolworths receives deliveries from the company, but does not use Scott's to deliver produce.


"The TWU is working with KordaMentha to ensure workers are prioritised in what we hope will be a sale to a responsible buyer."


Receivers appointed to Scott's Refrigerated Logistics said the business would operate as usual for the foreseeable future.


Scott's Refrigerated Logistics employs about 1,500 people nationally and has depots in regional towns, including Wodonga.(ABC Goulburn Murray: Callum Marshall)


KordaMentha partner Scott Langdon said workers would stay in their jobs through the sale process.


"We facilitated the payment of suppliers yesterday [Monday]," he said.


"The 1,500 workers are being paid tomorrow – on time – and we are now immediately commencing a sale process to find a new owner for the business."


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