SingPost fails to secure buyers for struggling U.S. units
Two of Singapore Post‘s U.S. e-commerce units – TradeGlobal and Jagged Peak have filed voluntary petitions for Chapter 11 bankruptcy protection.
In a statement Singapore Post explained that the decision was reached after failing to find buyers for the two struggling units. The sale process ran for over six months where SingPost appointed a financial adviser and reached out to potential buyers globally. The company said that the two offers they did receive had terms and conditions that were “commercially unfeasible to SingPost”.
Jagged Peak and TradeGlobal have as a result filed voluntary petitions for relief in the United States Bankruptcy Court for the District of Nevada. Under the supervision of the bankruptcy court, the US subsidiaries intend to pursue the sale of all or substantially all of their assets.
“SingPost will no longer include the US subsidiaries in its consolidated financial reports. For the quarter ended 30 June 2019, the unaudited consolidated loss arising from the US subsidiaries was approximately $6.9 million,” SingPost said.
SingPost is expected to incur professional and administrative fees during the process for the Chapter 11 proceedings, however these are not expected to be material.
“SingPost will monitor the financial impact on SingPost arising from the Chapter 11 proceedings, or any sale of assets under the supervision of the bankruptcy court, and will make further announcements as appropriate,” the company said.