Below dated May 2011 from The Australian (came across it in...

Below dated May 2011 from The Australian (came across it in doing some catch up BXB research)...and I note that iGPS have actually got another CEO in September....sounds like they might be on the ropes...and no doubt Brambles turning the screw!!!!


BRAMBLES' fortunes have improved markedly with US pallet rival IGPS seemingly about to implode, due to a combination of funding shortages and supply problems that have caused star client Con Agra to jump ship.
Brambles boss Tom Gorman is due to hold a market briefing tomorrow, which could feature news of the regained customer base.

The problems faced by IGPS were recently detailed by Credit Suisse's Anthony Moulder, and US trade magazine Pallet Profile last week quoted a letter from IGPS chief Steve Marton admitting "we have been suffering some challenges over the last six to eight weeks relating to pallet availability".

After losing key customers to IGPS, the Brambles worm has turned quickly.

Reportedly, some of the customers like Con Agra were lured away by cut-price contracts, which now don't look too flash.

The company was headed by former Chep US chief Bob Moore and former Brambles boss John Fletcher is a director, along with US football legend Joe Montana.

...IGPS reportedly has expressed confidence in its ability to work through the issues but its ability to maintain its growth rate to keep the pressure on Brambles is obviously in question.

It has enough cash to see it through the next couple of years.

The pallet supply problem was caused by its key supplier of plastic pallets, which in turn suffered after one of its customers went into Chapter 11 bankruptcy.

This left IGPS with the problem of not being able to meet new demand, and Con Agra was effectively cut off to keep the likes of Pepsi in supply.

Credit Suisse is tipping Chep will pick up about 9.4 million pallet orders from IGPS in the next year, and the longer-term depends on the US company's survival.

At a time when the US economy is struggling, it certainly doesn't hurt to have a potentially serious competitor run into problems -- and it would be better still if those problems remained.