Nick Scali (ASX:NCK), an Australian furniture retailer, has reported disruptions in its supply chain due to operational issues with one of its freight forwarders and customs agents.
The company stated that the agent is now under the administration of a liquidator, leading to substantial delays in the delivery of its products across Australia.
The issues have resulted in a number of Nick Scali's containers being held at ports.
In response, Nick Scali made an application to the Federal Court of Australia, which has since granted orders enabling the release of the company's containers through specific undertakings.
"With the court orders now granted, the company is working to have these containers delivered to its distribution centres to allow delivery of the goods to its customers as soon as practicable," the company said.
The company is currently focused on expediting the delivery of these containers to its distribution centres.
This action aims to ensure that products reach customers as quickly as possible, minimising any adverse impact on customer satisfaction.
Furthermore, Nick Scali anticipates incurring unexpected storage and detention costs due to these delays.
The full financial impact of these expenses remains unquantified but poses a risk to the company’s net profit after tax guidance for Australia and New Zealand in the first half of FY25.
The board at Nick Scali has committed to providing additional guidance on the financial implications of these events as more details become available.