ICSM Business - Logistics Insolvency News: staff and unsecured creditors ‘won’t get a penny’ from collapsed haulage company
By Harry Mottram: They may have been in business for 65 years and survived the recessions of the 1970s, 1980s, 1990s and the Credit Crunch of 2008 but when Covid came along in 2020 WJ Capper Transport of Telford in Shropshire the writing was on the wall. A drop in business, staff shortages, increased wages and hikes in fuel, energy and borrowing costs meant the family firm was insolvent according to the administrators FRP Advisory Trading.
However, hundreds of a family run firms in the logistics industry didn’t go under so there will be a few eyebrows raised as to the whys and wherefores – especially as the administrators have confirmed unsecured creditors and the staff are unlikely to receive any of the money they are owed. In 2022 the firm was trading at a loss – the administrators were reported by Chris Tindall in Motor Transport as saying: “The company’s financial issues were further complicated in early 2023 when the business and several connected companies were placed into a period of critical payments following an overpayment to one of the connected companies. This saw a significant proportion of creditors fall into arrears. Consequently, the company was insolvent on the basis that it was unable to pay its debts as and when they fell due.”
That statement appears to explain the financial mess the company that employed 40 staff had got themselves into which suggests Covid wasn’t the only reason they collapsed without paying unsecured creditors – although as Tindall reported a failed company voluntary arrangement (CVA) and attempted sale last October finished them off.
Ian Carrotte of ICSM - the business membership group dedicated to fighting bad debts and late payers with many members involved in the logistics industry – said the lesson is that at the first hint of trouble the financial director or equivalent needs to act. He said: “It is usually possible to look ahead at the next six months by inspecting the order book to get an idea of where a business is going. If the business is likely to experience cash flow problems, then a new strategy is needed quickly – slash overheads, lay-off some workers or trim the hours worked, sell any high value kit that is not essential and look at consolidating into a smaller and cheaper premises. When things pick up a business can expand. However, once the word goes out that a firm is in trouble it is only human nature for suppliers and customers alike to give it a wide berth. It results as happened here that suppliers and staff end up without a penny once the firm ceases to trade – according to the administrators.”
He said that if you are aware of a business is in trouble then checking them out on ICSM’s website can save a firm money and their owners sleepless nights.
Below are some recent casualties in the logistics sector:
ADMINISTRATORS APPOINTED
PHOENIX WORLDWIDE LOGISTICS LTD 02473670
ADMINISTRATION CREDITORS MEETING
FLYBE LIMITED 12875147
COMPULSORY LIQUIDATOR APPOINTED
EAST COAST HAULAGE LTD 12616560
CREDITORS’ VOLUNTARY LIQUIDATION DEEMED IN CONSENT MEETINGS
MILITARY PRECISION TRANSPORT LTD 12394125
UK FREIGHT & LOGISTICS LTD 12813675
CVL LIQUIDATORS APPOINTED
CALLUM WHITEHEAD HAULAGE LIMITED 10485953
CERTA CITO TRANSPORT LIMITED 10630159
CUMBRIAN STORAGE LIMITED 01130726
EUROVISION LOGISTICS LTD 06401323
JOHN LOGISTICS AND FORWARDING LTD 12092492
SAS TRANSPORT LIMITED 07322465
TRANSPORTED4U LTD 13980648
UK HGV DRIVERS LTD 13014049
XPECT COURIERS LIMITED 12142935
ZF TRANSPORT LTD 08657725
MEMBERS' VOLUNTARY LIQUIDATIONS
INTACT FREIGHT LIMITED 03995968
PETITIONS TO WIND UP
UK TRANSLOGISTICS LTD 11665467
PETITION DISMISSED
HAPS LOGISTICS LIMITED 11620973
SECRETARY OF STATE LIQUIDATION APPOINTMENT
LIBERTY COURIERS LTD 11668706
WINDING UP ORDERS
FIVE STAR TAXIS (DUDLEY) LTD 11256562
FOX COURIERS LIMITED 13440183
LOGISTICO LIMITED 09713302
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ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.carrotte@icsmcredit.com
