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News 226 views last update:6 Aug 2012

GrainCorp to sell all of its merchandising sites

Australian grain trader GrainCorp will sell all of its merchandise service centres, and exit the merchandise sector by the end of the current financial year.

GrainCorp managing director, Mark Irwin, said the decision to wind down the entire GrainCorp merchandise business was made after consideration of the results of a review of GrainCorp’s participation in the sector.
 
"We initiated a three-month review of the merchandise sector and concluded that GrainCorp needed to significantly expand merchandise operations to become profitable," Irwin said."During the review we did not find any attractive expansion options."
 
"The cost of finalising the merchandise operations by September 2010 is estimated at up to AUS$3.5 million after tax."
 
Already eight GrainCorp sites were closed making 20 jobs redundant. Another 17 sites are to follow but will continue to trade over the next nine months.
 
Where possible, GrainCorp will offer a number of these merchandise service centres for sale as operating businesses.
 
"We expect to be able to sell a number of service centres as going concerns over the next six months," Irwin said.
 
"Where an outlet is sold, we will work to transition customer accounts and inventory, and where possible staff, to the new owners. "This means it will be business as usual for customers of these centres."
 
Source: The Land

Dick Ziggers

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