The owner of trucking company Cootes is looking to cut hundreds of jobs, and expects to post a half year loss of $38 million.
The trucking company involved in a fatal fuel tanker crash in Sydney is looking to cut hundreds of jobs, and expects to post a $38 million half year loss.
McAleese Group, which owns Cootes Transport, plans to restructure the company to drastically reduce its size, after a Cootes tanker overturned and exploded on Sydney’s northern beaches in October 2013, killing two people.
The company has since lost national transport contracts with Shell and BP NSW, and has withdrawn from a 7-Eleven NSW and QLD contract.
Those lost contracts, plus the costs from maintenance upgrades on its fleet, will result in an impairment charge of $33 million in McAleese’s accounts for the six months to December 31.
That will contribute to an expected loss of $37.9 million for the group in the period.
The Cootes fleet will be reduced as part of a restructure, and the company estimates it will have redundancy costs of $12.9 million.
A spokesman was unable to confirm how many positions would be cut.
McAleese Group will release its complete half year financial results on February 24.