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Woolworths Group Ltd., identified as Australia’s largest retailer, has successfully acquired the assets of Takeoff Technologies Inc. for $2.5 million, according to documents obtained by The Robot Report. In addition to the purchase price, Woolworths will incur up to $700,000 in closing expenses.
This acquisition is pending approval under the Bid Procedures Order and related legal requirements. Takeoff Technologies, founded in 2016, specialized in automation systems that ranged from manual order fulfillment to sophisticated micro-fulfillment centers (MFCs).
With this deal, Takeoff Technologies is effectively ceasing operations. As part of the arrangement, Woolworths has committed to retaining at least 70% of Takeoff’s current employees.
In May, Takeoff Technologies filed for Chapter 11 bankruptcy protection, announcing its plans to seek buyers for its assets. This budgeting move came after the company leveraged $9.6 million raised from a clientele consortium through debtor-in-possession financing.
The Acquisition by a Client
Woolworths, a longtime partner of Takeoff, has emerged as the buyer. Their relationship began in August 2019 when they collaborated to implement automated MFCs across select locations in response to the growing online shopping trend among consumers.
The future direction for the assets acquired by Woolworths remains uncertain. The retailer is expected to maintain the MFC technologies in its operations, which raises questions for other customers of Takeoff, such as Hy-Vee and Albertsons, about their future support.
Industry analyst Brittain Ladd remarked, “It’s not unexpected that Woolworths secured this deal, given their intention to continue utilizing Takeoff’s micro-fulfillment centers for online grocery distribution. From a strategic standpoint, it may be wise for Woolworths and other Takeoff clients to explore technologies from alternative providers like Attabotics, AutoStore, and Brightpick.”
The Downfall Post-Pandemic
Takeoff Technologies previously claimed its micro-fulfillment system for groceries could generate between $25 million and $30 million per year in gross merchandise value (GMV). The company offered an array of services, including hardware solutions, cloud orchestration, industrial AI, data analytics, and ongoing support for its clients.
By working closely with retailers, Takeoff analyzed customer preferences and online demand in specific areas, facilitating the planning of site configurations and placements within broader distribution networks.
Takeoff asserted it could transition a customer’s initial live sites into operation in just a few months. Their automation projects included collaborations with Knapp, Hussmann, and Google, among others.
Although Takeoff experienced initial success, it struggled to maintain that growth trajectory as the heightened demand for grocery delivery receded following the pandemic.
Founded in 1924, Woolworths Group has been a significant part of Australian and New Zealand communities for nearly a century. As Australia’s largest private employer, it boasts a workforce exceeding 200,000 across more than 1,450 Woolworths Supermarkets, Metro Food Stores, Woolworths New Zealand, and BIG W discount department stores.
The retailer reports an impressive weekly customer volume, averaging around 25 million visitors.
Source
www.therobotreport.com