ICSM Business Membership Group: fighting late and non-payment – Logistics Sector Insolvency News: administrators at collapsed haulage firm promise to ‘maximise returns for the benefit of all creditors’ as 86 jobs go
By Harry Mottram: In the trade journal for the haulage industry Motor Transport, journalist Chris Tindall has reported on the collapse of another haulage firm. Founded in 1940 during the height of the Second World War, John Truswell & Sons, known as Truswell Haulage, grew to be a sizeable outfit with large fleet based at their Barnsley yard in Yorkshire and a workforce of 86 staff – now all made redundant after the collapse into administration.
Mark Thornton, BDO business restructuring partner, said: “Unfavourable market conditions have led to unsustainable commercial losses and, unfortunately, it has not been possible to secure a future for the company.
“As joint administrators, we will be taking the necessary steps to maximise returns for the benefit of all creditors in accordance with our legal duties.”
Tindall reported: “Two months ago, Truswell Haulage agreed a sale and leaseback deal with a private investor for its 70,865sq ft warehouse in Barnsley for £3.4m. At the time, property consultants Edwards said the sale unlocked significant capital for Truswell and enabled it to prioritise investment into the business to secure its long-term future.”
He noted: “Operating more than 50 HGVs out of four operating centres in Yorkshire as well as a base in Lanarkshire, the company was incorporated in 1940 and offered haulage services across the UK. Administrators at BDO said the haulier had been negatively impacted by sector-wide issues including reduced demand and cost inflation over recent times and its collapse resulted in 86 job losses. It added that an extensive business sales process was undertaken but that no offers were received.”
Ian Carrotte of the ICSM Business Membership Group that fights late and non-payment for firms across the UK said the logistics industry is very dependent of contracts with major clients. He said: “Hikes in interest rates, last year’s inflation that hit double figures and fuel prices have led to major problems for hauliers. Add to that the issue of servicing historic debt and it can lead to major cash flow problems.”
ICSM has many members who are in the logistics and haulage business.
John Truswell & Sons, known as Truswell Haulage, has become the latest victim of crippling market conditions and entered administration.
Operating more than 50 HGVs out of four operating centres in Yorkshire as well as a base in Lanarkshire, the company was incorporated in 1940 and offered haulage services across the UK.
Administrators at BDO said the haulier had been negatively impacted by sector-wide issues including reduced demand and cost inflation over recent times and its collapse resulted in 86 job losses.
It added that an extensive business sales process was undertaken but that no offers were received.
Mark Thornton, BDO business restructuring partner, said: “Unfavourable market conditions have led to unsustainable commercial losses and, unfortunately, it has not been possible to secure a future for the company.
“As joint administrators, we will be taking the necessary steps to maximise returns for the benefit of all creditors in accordance with our legal duties.”
John Truswell & Sons was acquired by OTIF Distribution in 2021 and for the following six months at least, the business continued to grow.
Administrators were appointed to the firm on 11 November
Its last set of accounts, for the period ending 31 July 2022, showed that turnover had grown to £12.2m compared to £10.7m in the year ending 30 June 2021.
However, pre-tax profit reduced by £43,000 to £388,000 despite it being a longer trading period.
Two months ago, Truswell Haulage agreed a sale and leaseback deal with a private investor for its 70,865sq ft warehouse in Barnsley for £3.4m.
At the time, property consultants Edwards said the sale unlocked significant capital for Truswell and enabled it to prioritise investment into the business to secure its long-term future.
++++++++++++
++++++++++++++++++++++++++++
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
