Downer EDI Limited (ASX:DOW) halts its catering services

Highlights 

  • After losing Melbourne Cricket Ground, Spotless Group Holdings (ASX:SPO), Downer EDI’s subsidiary, has decided to stop selling meat pies and beers at sports stadiums.
  • Spotless has been providing catering services at the Melbourne Cricket Ground for over 40 years.
  • The services will be shifted to Delaware North - a New York headquartered global group.

Downer EDI Limited (ASX:DOW) subsidiary – Spotless Group Holdings (ASX:SPO) has decided to stop selling meat pies and beers at sports stadiums after losing the Melbourne Cricket Ground.

Spotless has been providing catering services at the Melbourne Cricket Ground for over 40 years and is one of the largest integrated facilities management service providers. But it has now decided to even pause its remaining hospitality contracts.

The Company will stop working at the cricket ground in April as the services will be shifted to Delaware North - a New York headquartered global group.

As per media reports, Downer has sold around 60 small hospitality contracts so far. Most of these small contracts were catering contracts in corporates and schools.

The Group has put its remaining contracts for sale including catering agreements at Robina Stadium, North Queensland Stadium, Perth Convention and Exhibition Centre, Brisbane Town Hall, Melbourne Town Hall, and the events space Zinc at Melbourne’s Federation Square.

So far, Spotless has handed over 50% ownership in a catering joint venture to O’Brien Group, which has owned 50% of its New Zealand Contract. Downer has been selling off some other parts of its Spotless business, that also includes selling 70% of its laundries business to Adamantem Capital in March.

Downer shares closed 0.683% higher at AU$5.890 per share on Tuesday.

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