ICSM Business Membership Group: fighting late and non-payment – hauliers hit the skids as firms go to the wall including one hit by a massive bill by a former landlord
By Harry Mottram: The logistics trade publication Motor Transport has been charting the demise of several hauliers as debts, a bad Brexit business deal, fuel hikes and interest rate increases have led to some hitting the buffers recently. Writing in Motor Transport journalist Chris Tindall noted: “A Doncaster international haulage firm has lodged a notice of intention to appoint an administrator. McGregor Logistics, which has more than 30 years of experience within transport and warehousing and was incorporated 20 years ago, filed the papers in court on Wednesday (2 October). Its website said it offered full load deliveries, biomass sourcing and supply, pallet distribution, European haulage, warehousing and HGV servicing and repair.”
The firm is set to appoint administrators casting doubts over its survival with so 50 HGVs based in Doncaster and Scunthorpe and around 145 staff. Ian Carrotte of ICSM said it wasn’t clear what had brought about the firm’s collapse. He said, “historic debt is usually the problem with most insolvencies brought about loans that can no longer be serviced while new problems such as increased overheads lead to a cash flow crisis.”
Another firm in trouble reported by Chris Tindall is AE Chilled, who distribute products in temperature-controlled units but faltered when its main customer went bust. He wrote: “The pre-pack sale of AE Chilled in August, caused largely by the collapse of its key customer UK Salads, cost £100,000, its administrator has revealed.”
He said in a report to creditors, Begbies Traynor said AE Chilled’s European branch had also become less economical due to tax restrictions on trade which resulted in relatively low levels of revenue being generated. The administrators tried to sell the business with Big Transport Kent paying £100,000 which included its goodwill (£79,000), plant and machinery (£19,800) and stock (£1,000).
In another insolvency in the haulage sector Preston based H. Parkinson Haulage foundered over a costly dispute with a former landlord who claimed more than a million pounds over dilapidations. Ian Carrotte of ICSM said the company had been trading for six decades with around 100 staff who now face the axe. He said: “Back in 2022, the firm left is Walton Summit location but ICSM understands the landlord slapped a massive bill for damage to the site. No firm can survive such a bill of more than £1.6m and so it is no surprise the business failed.”
Writing for Motor Transport Chris Tindall reported: “FRP Advisory said it had an extensive fleet of vehicles and trailers and had a workforce exceeding 120 staff, including over 100 drivers and warehouse operatives. In early 2022, H. Parkinson – part of the HPH Group – vacated its Walton Summit industrial estate premises, before the landlord served notice that it owed £1,625,171 in dilapidations. The haulier employed lawyers to challenge this claim, saying it was “unsubstantiated and overstated”. FRP said it also obtained an independent professional dilapidations report, which showed substantially reduced costs for the works and which resulted in the landlord knocking almost £1m off its claim.”
However, in a report to creditors, the administrator said: “The uncertainty surrounding the dilapidations claim, combined with the fierce competition in the haulage industry and driver shortages, caused strain on the company’s cash flow, due to the reduced margins and increased driver agency costs which were at a premium. This resulted in the company recording a loss of £34,972 in the accounts to 30 June 2022.”
Motor Transport reported: “FRP added that all offers to negotiate a settlement were rejected by the landlord and although turnover increased during 2023, its pre-tax losses deepened to almost £341,000, which piled pressure on its cash flow and credit facilities held with the bank. This led to it falling behind with its creditor liabilities and when companies began threatening legal action and the material loss claim looked likely to continue rumbling on, the directors sought insolvency advice. An orderly wind-down was found to be the only viable way forward, with a number of customer accounts and vehicles transferred to one of the associated businesses within the HPH group, including 10 curtain-sided tri-axle trailers. Company creditors are estimated to be owed £2.8m.”
East Midlands company Intake Transport has filed notice of its intention to appoint an administrator, in an attempt to save the business from liquidation. Its collapse is linked to the steel industry as it transported steel from the main blast furnaces for projects such as the building of a new stadium at Hearts of Midlothian and the Gravesend railway station refurbishment scheme. The switch to electric furnaces has seen a drop in business – another casualty linked to changes in manufacturing steel in the UK.
More casualities in the logistics' sector:
ADMINISTRATORS APPOINTED
CROYDON LOGISTICS LIMITED 00574704
DRIVER 8 LTD 09896972
GWYNEDD TRANSPORT LIMITED 03291941
TRUST DISTRIBUTION LTD 05354872
LOGISTICS GROUP LIMITED 07950784
Q DELIVERY SERVICES LIMITED 08372300
ADMINISTRATION CREDITORS MEETING
FLYBE LIMITED 12875147
COMPULSORY LIQUIDATOR APPOINTED
EAST COAST HAULAGE LTD 12616560
CREDITORS’ VOLUNTARY LIQUIDATION DEEMED IN CONSENT MEETINGS
AVONLINE TRANSPORT LIMITED 04929810
KRIS COURIERS LIMITED 10077355
MCP COURIERS LIMITED 13947515
UK FREIGHT & LOGISTICS LTD 12813675
CVL LIQUIDATORS APPOINTED
AD11 TRANSPORT LIMITED 14887473
COVENTRY COURIERS LIMITED 07574759
DEMA COURIERS LTD 10540775
FREIGHTLINE (SOUTH WEST) LIMITED 06819896
P.A.M. DISTRIBUTION LIMITED 04173431
MEMBERS' VOLUNTARY LIQUIDATIONS
INSIGHT PRINT MEDIA LIMITED 06736188
JMT LOGISTICS LIMITED 06760338
S A H TRANSPORT LIMITED 04994708
S J POLLARD TRANSPORT LIMITED 03776900
PETITIONS TO WIND UP
ABBY LOGISTICS LIMITED 08415228
BLUE CIRCLE EXPRESS LTD 10228943
COMPLETE LOGISTICS GROUP LIMITED 13406811
LP LOGISTICAL TRANSPORT SERVICES LTD 10738994
NGAMAL’S LOGISTICS LTD 12083939
SOUTH LOGISTICS LTD 12621181
UK TRANSLOGISTICS LTD 11665467
PETITION DISMISSED
HAPS LOGISTICS LIMITED 11620973
SECRETARY OF STATE LIQUIDATION APPOINTMENT
GXO UK LOGISTICS LTD 13302161
T & N MIXERS LIMITED 09091999
WINDING UP ORDERS
NATIONAL SAMEDAY LIMITED 02845774
UK TRANSPORT 2019 LTD 12240964
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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
