ICSM insolvency haulage news: from company collapses to the ’Brexit mess’ – and news of a new date for the CV Show
All is not well in the haulage industry with a huge shortage of drivers made worse by the introduction of the IR35 tax changes. Add to that problems with the Brexit trade deal affecting imports and exports and 2021 is turning out to be no better than last year.
The Road Haulage Association have called on the Government to make sweeping changes to help alleviate the problem. These include measures to speed up the backlog of testing and training to increase the numbers of HGV licences, a better return from the apprenticeship levy and improved driver facility nationwide to make the industry more attractive to newcomers and a continued freeze of fuel duties.
Pic: Coach Tourism Association
Collapse in coach tourism
The holiday industry has been hit for six by the lockdowns and Covid related restrictions with the coach tourism trade badly damaged causing a big rise in unemployment as firms cut back.
Ian Carrotte of ICSM said: “The monthly listings of firms in trouble or who are being liquidated that we run in our monthly newsletter are alarming. The collapse in the last 12 months of many familiar names has left a trail of debt. Last year Shearings’ owner Special Leisure Group went bust, while in Coventry Travel de Courcey also went the wall and Isle of Wight Tours and Gardiners NMC Limited both ceased trading in 2020.”
He reminded firms who supply the transport industry to tread carefully when it comes to credit as every week more companies enter administration – often without warning.
Transport firm’s loss
Motor Transport has reported on the West Bromwich logistics outfit New Generation Courier (NGC) Logistics has entered administration.
In a holding statement placed on their website the courier company said: “The affairs, business and property of New Generation Courier Logistics Limited are managed by the joint administrators, Alan Clark of Carter Clark and Neil Bennett of Leonard Curtis Group, who act as agents of the company and without personal liability.”
Motor Transport reported: “NGC Logistics was incorporated in 2008 and it holds standard international operator licences in the East of England and West Midlands traffic areas, authorising 10 and 16 HGVs respectively. It offered next day express package deliveries, European business-to-business freight, warehousing and storage options, as well as returns services to customised deliveries. Its last available set of financial results said its core activity remained a final mile delivery service. For the year ending 31 July 2019, the company made a pre-tax loss of £137,000 on a turnover of £26.2m.”
Pic: Motor Transport
Show moves to September
Following the government’s recent announcement of a roadmap out of lockdown, The Commercial Vehicle Show LLP has taken the decision to reschedule the 2021 Commercial Vehicle Show. The Show will be held on the new dates of Tuesday 31st August – Thursday 2nd September 2021. For all the latest news about the 2021 Commercial Vehicle Show, visit the Show website at www.cvshow.com.
JWT Commercial
Chris Tindall in Motor Transport has reported on the the JWT Commercial collapse. He said: “Administrators handling the affairs of failed container specialist JWT Commercial said it chose not to furlough the 80 staff because it ran the risk of abusing the coronavirus payment scheme. In a report to creditors outlining the final days of the Merseyside haulage firm, insolvency experts at Duff & Phelps said all staff were made redundant shortly after their appointment and it wasn’t able to utilise the coronavirus job retention scheme (CJRS).”
Apparently a factor in its decision was the outcome of a high court case involving restaurant chain Carluccio’s, which entered administration last year said Chris Tindall.
Ian Carrotte of ICSM said that it was a classic case of the damage the loss of a customer who goes bust can have. He said: “It’s a like a domino effect as if the debt is so big it will bring down the supplier so it is always best to have a bread spread of customers and never allow significant credit to a firm that is struggling.”
The company based in Bootle was shown in a statement of affairs to owe a round £1 million to unsecured creditors.
Brexit problems for haulier
Writing for Motor Transport Tim Wallace has quoted the boss of Culina as saying: “Brexit a big bloody mess that’s cost us a boatload of money.” The CEO Thomas van Mourik of the Irish haulage firm said: “Brexit is one big bloody mess, it’s rubbish. What we and our customers have gone through with delivering goods from the UK to Ireland has been a nightmare. Nobody could get it right before 31 December. The goalposts got changed every five seconds, it wasn’t clear so we went in at the deep end.”
He said the Brexit trade deal had damaged the firm’s profitability and it had led to some their customers ceasing trading while some of the firms he knew of were no longer trading with the UK but had switched to trading with the continent.
Bedfords creditors
It has been reported that trade creditors of the collapsed Midlands haulier Bedfords may receive some money from the administrator.
Insolvency practitioners KPMG said that unsecured creditors should a dividend from the creditors’ voluntary liquidation (CVL)".
Motor Transport said that preferential claims of £71,617 were paid in full in November 2020. The trade website said: “The Palletforce founding member company, which employed 84 staff and specialised in transporting printing materials, packaging and homeware, entered administration in March 2019 following cash flow difficulties. Just a few days later, RPL Transport, which was purchased by Bedfords in 2014, followed its parent company into administration. The report said it had received an interim dividend of £580,514 from the liquidation of RPL and that another £64,000 is expected from RPL’s liquidators in due course.”
Ian Carrotte said the company was well known to the printing and allied trades for transporting materials and printed goods but with the collapse several customers of the firm had lost significant amounts of cash.
Meanwhile Motor Transport has also reported that trade creditors owed money by Gloucester-based Lima Logistics, which collapsed into administration as a result of the Covid-19 pandemic, are expected to receive a dividend. They reported that a progress report from Quantuma Advisory, it said that unsecured claims had initially been thought to be £270,806 but it had now received 11 claims totalling £315,594. However, even though the figure is almost £45,000 more than estimated, this class of creditor should still receive at least some money back. More on the story at https://motortransport.co.uk/blog/2021/04/30/trade-creditors-of-collapsed-parcels-firm-set-for-payout/
About ICSM Credit
ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.
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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk