SingPost's U.S. e-commerce units seek bankruptcy protection

Singapore Post

19/09/2019 09:45

SINGAPORE, Sept 19 (Reuters) - Singapore Post Ltd  SPOS.SI 
said its two struggling U.S. e-commerce units, Jagged Peak and
TradeGlobal, have filed voluntary petitions for Chapter 11
bankruptcy protection as a six-month process to find buyers for
the businesses failed.
    "Under the supervision of the bankruptcy court, the U.S.
subsidiaries intend to pursue the sale of all or substantially
all of their assets," SingPost said late on Wednesday.
    The underperformance of the two firms has hit profits at
SingPost, which counts Singapore Telecommunications  STEl.SI 
and Alibaba Group Holdings  BABA.N  as its biggest shareholders.
    SingPost took an impairment of S$98.7 million ($72 million)
on the carrying value of TradeGlobal and Jagged Peak in the year
ended in March 2019, and had put them up for sale in April.
    SingPost bought majority stakes in TradeGlobal and Jagged
Peak for about $184.4 million in 2015, as part of an acquisition
spree under its previous chief executive.
    The businesses provide e-commerce services, including
logistics and website design.
    ($1 = 1.3771 Singapore dollars)

 (Reporting by Aradhana Aravindan in Singapore; Editing by
Himani Sarkar)
 ((aradhana.aravindan@thomsonreuters.com; +65 6403 5659;))