Contact: Alison Davies
Deloitte
Media Relations
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Despite efforts to sell the business, the wholesale division of Sam’s Seafood will be closed down by the end of June, as a buyer could not be found for the business.

The Receiver of Sam’s Seafood, Deloitte Partner Mr John Greig, today advised that the offers received from potential buyers of the remaining Sam’s business contained terms which were not acceptable, forcing the closure of the wholesale seafood trading business located at Eagle Farm in Brisbane. The Brisbane wholesale division employs 67 people.

Mr Greig stated that the stock shortfall discovered in Sam’s main operating entity, Sam’s Seafood Hamilton Limited, soon after his appointment last month, compromised his ability to either continue to trade or restructure the business to restore it to a viable going concern.

“A number of Sam’s major suppliers had ceased supplying Sam’s as a result of its poor payment record just prior to my appointment,” Mr Greig said. 

He stated that whilst he was able to obtain product from the majority of these suppliers once appointed as receiver, the business was not able to operate on a profitable basis by reason of the high level of rent and other fixed overhead at the Eagle Farm head office and main processing and warehouse facilities.

Mr Greig stated that the retail fresh seafood store at Hamilton in Brisbane and the wholesale fresh and frozen operations in Gladstone would continue to operate whilst continuing interest in these assets is determined and assessed. 

“We will now attempt to sell the Sam’s assets on a piecemeal basis for the benefit of creditors,” he said.

“The support we have received from the majority of Sam’s staff, customers and suppliers has been fantastic in what have been very difficult circumstances,” Mr Greig said.

Mr Greig appealed to the customers of the Hamilton retail store in Brisbane and Gladstone to continue to support Sam’s whilst new owners of these businesses are identified.