Nick Scali (ASX:NCK)is Australia and New Zealand’s leading furniture retailer specializing in premium and stylish furniture. An operational issue at one of the company’s carriers and customs brokers has reportedly caused significant disruption to the supply chain and is currently under administration. The situation has resulted in delays for a significant number of the company’s shipping containers, impacting product delivery across Australia.

In response to the current turmoil, Nick Scali successfully sought a federal court order forcing shipping lines to release containers subject to certain commitments. The company is currently moving products to distribution centers and working to fill customer orders as quickly as possible.

Delays are expected to result in unanticipated storage and detention costs, which cannot be quantified at this time.

Additionally, the disruption puts the company’s FY25 H1 net profit after tax (NPAT) guidance of $30 million to $33 million in Australia and New Zealand at risk.

Nick Scali has committed to updating its financial guidance once the full impact of these events is clear.

The stock closed 1.7% lower at $13.84.