SINGAPORE: Singapore Post said its two struggling US 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 US subsidiaries intend to pursue the sale of all or substantially all of their assets," SingPost said late on Wednesday.
AdvertisementAdvertisementThe underperformance of the two firms has hit profits at SingPost, which counts Singapore Telecommunications and Alibaba Group Holdings as its biggest shareholders.
SingPost took an impairment of S$98.7 million (US$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 US$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.
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