ICSM Business – Logistics Insolvency News: Gwynedd Shipping leaves unsecured creditors with an £8million black hole – and they won’t get a penny
By Harry Mottram: the administrators of collapsed logistics outfit Gwynedd Shipping have given creditors the bleakest assessment of the situation -they won’t get anything. Writing in Motor Transport Chris Tindall reported: “The Gwynedd Shipping group of companies that collapsed into administration in February are estimated to owe unsecured creditors almost £8m with none expected to receive their money, according to accountants at Kroll. In a report to creditors, the administrator explained how Gwynedd Shipping (GS), Gwynedd Transport (GT) and Gwynedd Shipping Logistics (GSL) had all been experiencing cashflow pressures in the run-up to its appointment, ‘due to trading underperformance’. Kroll launched an accelerated merger and acquisition process in order to find a buyer, but it said that despite an exhaustive process no suitable offers were made for the businesses, on either a solvent or insolvent basis.”
Kroll added up the quartet of companies debts with each section owing anything from three quarters of a million pounds for the storage subsidiary and close to four million pounds owed by Shipping sector.
Ian Carrotte of ICSM said it was a black day for the 123 staff who were made redundant. He commented: “The company were based in Holyhead, Ellesmere Port, Shotton and Llanwern and held an operator licence for 30 HGVs and 50 trailers. That’s all gone which follows a pattern of other logistics firms struggling or going under. It’s a case of skyrocketing fuel prices and increased labour costs squeezing profit margins plus all the usual suspects from a bad Brexit trade deal to inflation and energy costs.”
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