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SingPost's bankrupt US units sell assets
MAIL and logistics firm Singapore Post (SingPost) on Friday announced that its two beleaguered US e-commerce subsidiaries, Jagged Peak and TradeGlobal, have sold substantially all of their assets.
This comes after the group's earlier unsuccessful attempt to sell both businesses. In September, SingPost said it did not receive acceptable offers for the subsidiaries following a six-month sale process.
After filing for Chapter 11 protection under the US Bankruptcy Code, Jagged Peak and TradeGlobal had commenced the marketing and sale process of their assets as part of the bankruptcy process, SingPost noted on Friday.
ID Logistics, a European contract logistics group, bought the assets of Florida-based Jagged Peak for US$15 million, according to a separate statement by ID Logistics on Thursday.
Meanwhile, American shipping and fulfillment service provider Visible Supply Chain Management (VSCM) acquired Ohio-based TradeGlobal's assets for an undisclosed amount. VSCM said in its press release that it will continue to operate the business, which will protect more than 350 local jobs.
SingPost said it does not expect any financial impact to the group from the sales because Jagged Peak and TradeGlobal had been deconsolidated from SingPost's financials.
The two subsidiaries recently filed for voluntary petitions for relief under Chapter 11, which gives companies in financial distress temporary protection and breathing room to restructure their debts, reorganise their businesses, and propose a marketing and sale process.
SingPost bought majority stakes in TradeGlobal and Jagged Peak for about US$184 million in 2015.
Jagged Peak provides software and services to help businesses improve profitability on multiple channels. TradeGlobal offers website development, logistics, digital marketing, creative services and order management for the fashion, beauty and lifestyle sectors.
SingPost shares were trading at S$0.925 as at 9.55am on Friday, down 0.5 Singapore cent or 0.5 per cent, after the announcement was made.