Hauliers take a hit as firms struggle with debts, bad debts and business disappearing (and that's BEFORE Covid-19)
The combination of the Covid-19 crisis and growing issues within the haulage industry as the economy prepares for the deal with the EU at the end of the year has seen firms call it a day.
One of Bristol’s hauliers has gone into administration writes Chris Tindall in Motor Transport. He reported: “Bristol-based freight firm Drive Force (UK) has entered administration. Calls to its Gloucester Road, Avonmouth office were not being answered, but motortransport.co.uk understands that Paul Wood and Simon Haskew at Begbies Traynor were appointed as administrators of the business on 4 June. Incorporated in 1999, the company are specialists in bulk car and HGV distribution and storage across the UK and Europe.”
Meanwhile liquidators have been appointed at Karl King Transport based in Ipswich and established in 1991 after the firm called in administrators in December. A note on their website states:“Nicholas Cusack of Parker Andrews Limited and Andrew Andronikou of Quantuma LLP were appointed Joint Administrators of the Company on 19 December 2019. The Joint Administrators are responsible for managing the affairs, business and property of the Company. The Joint Administrators are acting as agents of the Company and contract without personal liability”.
Motor Transport’s Chris Tindall also reported on another unhappy situation in Scotland where unsecured creditors of Grangemouth haulier Duncan Adams did not receive any money owed to them before the company was dissolved last week. He writes: “In a final report from administrator Deloitte, it said there had been insufficient realisations to enable a distribution to these creditors after the company entered administration in March 2017. At the time, the move led to an immediate 132 job losses.”
He also reports on a construction business who had the plug pulled on their firm by a transport company. Chris Tindall said: “The administration of Manchester construction haulier Digway was precipitated by Stobart Rail withholding £317,000 from the company after its new management discovered it had overpaid by hundreds of thousands of pounds. The detail is included in a report to creditors from administrator Cowgill Holloway Business Recovery, which explained how a string of bad debts also caused cashflow problems to Digway.”
Ian Carrotte of ICSM Credit said: “The transport industry has also been hit by the Covid-19 crisis but these cases date back in part during the uncertainties of the Brexit kerfuffle. However if the truth is known most firms collapse due to too much debt and a downturn in business and that can happen at the best of times. Their best bet is to join us at ICSM Credit to find out who is likely to go bust in the future and thus avoid bad debts.”
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.
For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.
To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com
For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk