Food shortages: Frozen food worth $500m could go to waste after Scott’s collapse

In another hit to the freezer aisle, thousands of frozen products could be destined for the bin following the collapse of refrigerated logistics company Scott’s, sparking major grocery shortage concerns.

The fate of more than $500 million worth of cold items is in limbo as receiver KordaMentha attempts to relocate about 114,000 pallets of food, The Australian reports.

Scott’s has 24 warehouses nationwide that need to be cleared out due to the company going bust, however with limited cold storage facilities elsewhere, these products risk going to waste.

Despite supermarket giant Coles already claiming their share of products from the logistics company, several other suppliers are yet to retrieve their items from storage.

Meanwhile the Federal Government is yet to announce whether it will provide any funding to help with the transportation and storage of food.

For now, KordaMentha is holding talks with the truck company’s landlords and customers to prevent a massive grocery shortage, but this is only a short-term solution.

“There’s not enough space in the storage capacity to realistically relocate the stock,” voluntary administrator McGrathNicol partner Jonathan Henry told The Australian.

“Negotiations and site visits have been conducted with landlords and customers to determine a pathway forward.”

Another meeting with creditors is expected to be held in the coming weeks to find alternative space for the food, however a long-term solution is needed to avoid a mass grocery shortage crisis.

In the meantime, all shoppers can do is watch and wait as it’s up to the suppliers to determine how they will acquire their products.

The national cold chain logistics company went into administration last month, before going into a “controlled wind down” last week after it failed to acquire a buyer.

As a result, 1200 Australian workers were left without jobs while 300 more were retained to help clear warehouse stock and perform other duties.

The firm, which was one of Australia’s biggest trucking companies, provided refrigerator trucks and warehouses for supermarket giants Woolworths, Coles, Aldi and IGA.

It also provided services to independent supermarkets, food manufacturers and exporters.

It’s understood Scott’s 500 trucks are set to go up for sale, which the company claimed travelled more than 500,000km a day while the company was in operation. has contacted KordaMentha for comment.

Originally published as ‘Not enough space’: $500 million worth of frozen goods in limbo after Scott’s collapse

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