Metcash sells FoodLink to Bidvest in shake-up

Group reorganisation sees non-core food service firm divested, Campbells stores sold and nearly 500 jobs lost

April 3, 2012

Metcash has restructured, with its IGA Distribution arm joining Fresh, Merchandising and Campbells in the newly formed Metcash Food and Grocery division.

The grocery supplier's move follows a root-and-branch review of the group's entire operation, announced in November 2011.

Along with 478 positions destined for redundancies across the group, Metcash plans to close 15 regional Campbells Cash & Carry stores.

"This recognises the changing dynamic in the convenience sector as our mix of business swings more heavily towards the organised petrol and convenience sector and away from the accelerating decline of traditional convenience stores," Metcash CEO Andrew Reitzer says of the Campbells closures.

"This strategy is aimed at further reducing the fixed cost base of Campbells, while replacing it with the latest single-pick distribution solution and a network of optimally situated branches."

Also out the door is Western Australia’s FoodLink Food Service, with its fleet of Iveco refrigerated rigids and Sprinter vans.

It will be sold to Sydney-headquartered Bidvest Australia for an undisclosed sum, having been purchased in 2005.

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