UPDATE: In a significant move, Quadrant has finalized the sale of Grays.com to family-owned Slattery Auctions for a nominal amount, as revealed late Thursday night. This decision comes after years of attempts to divest from the struggling online auction house, which has been grappling with a crippling debt load.
The acquisition marks a pivotal moment for Grays.com, now generating only $600,000 in EBITDA while burdened with $10 million in debt stemming from a fine imposed by the Australian Competition and Consumer Commission (ACCC) in July 2024. The fine was a consequence of Grays.com’s admission to producing false and misleading representations about vehicles in its online listings.
Sources close to the deal, who requested anonymity, indicate that Slattery Auctions, led by Tim Slattery, is not only acquiring Grays.com but also its outstanding debt with Westpac. The family-run business is now exploring various restructuring strategies, including the possibility of insolvency. This approach aims to revitalize the once-popular Grays.com brand, leveraging synergies between the two companies in industrial equipment and automotive sales.
Grays.com was previously owned by the listed leasing company Eclipx, now known as FleetPartners, and had a fleeting presence on the ASX boards until its delisting in 2017. At its peak, Grays.com was valued at approximately $300 million and was projected to achieve $132.9 million in net revenue that year, with over 80 percent of its profits generated from industrial equipment sales.
This latest development is crucial as it underscores the challenges faced by Grays.com and its previous owners. The auction house’s diminished financial state serves as a stark reminder of the competitive landscape in the online auction sector.
As Slattery Auctions moves forward with the acquisition, all eyes will be on how they plan to navigate the restructuring process and potentially rejuvenate the Grays.com brand. The family believes that with the right strategies, they can turn around the fortunes of this once-iconic entity.
Officials from both Quadrant and Slattery Auctions have yet to comment on this urgent update, leaving many stakeholders eager for further details on the future of Grays.com.
Stay tuned for developments as this story unfolds, with implications for investors and the broader online auction market.
