Administrators for Queensland group of companies say there is no buyer for the full business.
A rapid company-market sale for Keeforce Transport and Fresh Produce Logistics has failed to find a buyer for the businesses as a combined going concern.
While a partial rescue still holds potential, much of the group is now being dismantled, with “a large number” of redundancies likely.
“We have received interest in both businesses from a range of parties, but unfortunately there is no buyer for the business in its entirety,” Ferrier Hodgson partner Brendan Richards says.
“As a consequence, we will be undertaking a rapid restructure to ensure continuity of service for specific customers of Keeforce, while the rest of the group will be wound down.”
Deliveries booked or already in transit when the announcement was made on Thursday have had their journeys completed, but Keeforce and Fresh Produce Logistics are now serving only the group’s five largest customers.
The remaining parts – including almost all of Keeforce’s customers – will be wound down completely.
A spokesperson for Ferrier Hodgson says there has been no alteration to the contract terms of those customers that have been retained.
She is not able to confirm who the customers are, or what percentage of the original business they represent.
“It is unfortunate that such a significant reduction in the Keeforce fleet and employees is now inevitable, but we are working hard to save some aspect of the business,” Richards says.
The first meeting of creditors for the combined group was held this morning.