Stobart's busy week: shuffle, sale, shake-up
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By Christopher Walton STOBART GROUP has discontinued one line of business, sold another and shaken up its board of directors in a tumultuous seven days for the haulier.
Firstly it pulled the plug on its chilled division — primarily business made up of old Innovate Logistics operations. Then it sold its automotive after-sales division, Stobart Vehicle Services, formerly part of Autologic, to rival car transport operator Paragon Group for an undisclosed sum. Both preceded boardroom changes that saw the departure of long-term nonexecutive chairman Rodney BakerBates, as well as non-executive director David Beever.
Stobart Group chief executive Andrew Tinkler told CM that downturn in volumes of palletised chilled freight made it uneconomical to continue what was no longer a viable, profitable business. He warned that there would be job losses, adding that it would relocate staff to its ambient business if possible. He would not be drawn on numbers.
"Some of the fleet will be downsized slightly, and some will move into ambient where we do a lot of full-load trunking," he said.
Tinkler said its chilled distribution commitments to customers would be fulfilled by third-party hauliers: "There are other transport companies that have a chilled network. There is only room for so many people in the market."
Former Autologic boss Avril Palmer-Baunack will become executive chairman immediately, running the company alongside Tinkler. He said: "Avril has demonstrated to the board that she is the right person to carry out this demanding role."