UPDATE: Quadrant Private Equity has officially sold Grays.com to family-owned Slattery Auctions, marking a significant shift amid ongoing financial turmoil. The deal was finalized Thursday night for a nominal amount, as Quadrant grapples with a hefty debt load following a series of unsuccessful exit attempts over the past six years.
Sources close to the transaction reveal that Slattery Auctions, led by Tim Slattery, has acquired Grays.com, which is currently facing a staggering $10 million in debt. This financial strain is largely due to a fine imposed by the Australian Competition and Consumer Commission in July 2024 for misleading representations about cars in its listings.
Grays.com, once a vibrant online auction house, is now a shadow of its former self, generating approximately $600,000 in EBITDA. The acquisition includes Grays.com’s existing debt held with Westpac, and Slattery Auctions is reportedly exploring various restructuring options, potentially including insolvency, to rejuvenate the brand.
Both companies specialize in industrial equipment and automotive sales, creating potential synergies that Slattery believes can revitalize Grays.com into a competitive player once again. The deal comes at a critical time, as Quadrant’s struggles with Grays.com are not just financial but reputational, affecting their fundraising efforts.
Previously, Grays.com was owned by Eclipx, now known as FleetPartners, and enjoyed a brief stint as a publicly listed entity on the ASX until 2017. At that time, it was valued at approximately $300 million and forecasted to generate $132.9 million in net revenue for that year.
Officials from Quadrant and Slattery Auctions have not yet responded to requests for comment, leaving stakeholders and industry observers eagerly awaiting further details on the future of Grays.com.
As this situation continues to develop, the focus will be on how Slattery Auctions plans to navigate the challenges ahead and whether they can successfully restore the Grays.com brand to its former glory. Stay tuned for more updates as this story unfolds.
