SingPost says bankrupt US units sold assets

SingPost said it does not expect any financial impact to the group from the sales. ST PHOTO: KELLY HUI

SINGAPORE (THE BUSINESS TIMES) - Singapore Post (SingPost) on Friday (Dec 13) announced that its US e-commerce subsidiaries Jagged Peak and TradeGlobal, which have filed for bankruptcy protection, have sold substantially all of their assets.

SingPost bought majority stakes in TradeGlobal and Jagged Peak for about US$184 million (S$249 million) in 2015 but the foray into the North American e-commerce market did not pan out and the US units racked up millions in losses. A six-month attempt to find buyers for the businesses with acceptable offers also failed.

Jagged Peak provided software and services to help businesses improve profitability on multiple channels. TradeGlobal offered website development, logistics, digital marketing, creative services and order management for the fashion, beauty and lifestyle sectors.

After filing for Chapter 11 protection in the US in September, Jagged Peak and TradeGlobal began the marketing and sale process of their assets as part of the bankruptcy process.

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 on Friday that it does not expect any financial impact to the group from the sales because Jagged Peak and TradeGlobal had been deconsolidated from its financials. This means it no longer recognises profit or loss from the US subsidiaries.

SingPost has already written down the entire value of its US investments, taking an impairment charge of $98.7 million on the carrying value of TradeGlobal and Jagged Peak in the financial year ended in March 2019.

SingPost shares were trading at 92.5 cents as at 9.55am on Friday, down 0.5 cent or 0.5 per cent, after the announcement was made.

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