The company said on Monday it had signed a binding agreement with the governing body for independent Foodland retailers in South Australia, which includes the form of new 10-year wholesale supply agreements out of its proposed new distribution centre in the state.
Losing the Drakes account started a sell-off that caused Metcash shares to lose about a fifth of their value, and contributed to Metcash slashing the value of its supermarket business by about a third in a $352 million write-down. It also raised fears among investors that other Metcash customers could jump ship to Drakes' rival supply chain.
According to smh.com.au, Metcash said that with the agreement revealed Monday - which depends on it signing a lease for a new distribution centre before December 21 - most of its sales in the state were now locked down.
