ICSM Business News: the perfect economic story hits hauliers with inflation, hiked interest rates, covid debt, Brexit, labour shortages and fuel prices forcing more firms to go bust

ICSM Business News: the perfect economic storm hits hauliers with inflation, hiked interest rates, covid debt, Brexit, labour shortages and fuel prices forcing more firms to go bust

By Harry Mottram: Students of the logistics industry will have seen a number of hauliers go to the wall recently as a perfect storm his the business. The Institute For Government – the charitable think tank working to make Government more effective – has listed some of the reasons why so many have gone bust. And it’s not exactly a state secret as to what these reasons are.

They cite: “The causes of supply chain disruptions in the UK are complex. Labour shortages, Brexit trade barriers, global supply problems and panic buying have all contributed.”

And in the trade press Chris Tindall of Motor Transport has charted the downfall of several firms this autumn. Corporate Solutions with is fleet of HGVs had a £700,000 pre-tax loss six months before its demise. He reported: “The Solihull-based firm closed in October after suffering increasing fuel and driver costs, with the implementation of IR35 rules compounding its problems according to administrators FRP. In a report to creditors, FRP said the off-payroll working rules contributed to the driver shortage and adversely affected the haulier and the subcontractors it required to deliver customer contracts.”

The firm had defaulted on payments to the taxman owes more than a quarter of a million pounds to preferential creditors who are unlikely to get all what they are owed while unsecured creditors are owed an eye-watering £3.1 million pounds.

In a slightly better position are the creditors of Herts-based TV and film transport company and the associated business Green Clover, who provided transport and recycling services to the film and entertainment industries. Chris Tindall reported that joint administrator Guy Holland had managed to sell some of their kit meaning creditors may get around 5p in the pound. Holland said Covid had been the cause of a rise in debt due to the shut down of much of their customers due to the crisis.

Another casualty reported by Motor Transport last month was Loughborough-based Eclipse Distribution who “has entered administration, just a year after its founder sold the business to a private equity firm.” More jobs have gone at the firm with suppliers wondering if they will be paid.

The list goes on with Saints Transport collapsing this summer with Chris Tindall reporting: “…disaster struck, first with Brexit causing a large drop in volume of work and a costly reliance on agency drivers and then the ‘absolutely catastrophic’ effect of Covid on the business: ‘The workload disappeared overnight, but the company’s overheads remained.’”

Behind with tax payments and facing a heft legal bill plus a fall in trade due the firm entered administration on August 1.

ICSM has recorded in its Runners and Riders newsletter a long list of hauliers and associated logistic firms who have gone to the wall. These are just a few of the latest casualties:

LIQUIDATORS APPOINTED

ALL WORLD FREIGHT LIMITED    02147085

EARLS REMOVALS LTD     09181052

LTG DISTRIBUTION LIMITED     10255827

M ADE TRANSPORT LTD     11486295

NVP VEHICLE RENTAL LIMITED    10940919

ONLINE WAREHOUSE LIMITED    05002244

PKS HAULIERS LTD    04802480

AFP VAN HIRE LIMITED    03541339

AJJ TRANSPORT LTD    08106997

ASKIN HAULAGE LIMITED    08444224

BLC HAULAGE CONTRACTORS LIMITED    10349472

BRIDGE AND LOGISTICS LTD    08108393

ERNEST THORPE TRANSPORT LIMITED    03779073

GABRIEL TRANSPORT SERVICES LTD    10306753

GH LOGISTICS LTD    09520501

GOLDEN EAGLE EXPRESS LTD    12433039

GSD LOGISTICS LIMITED    11642715

HARMONY DELIVERY TRADE LTD    09751458

HGV DRIVER RECRUIT LTD    12130216

HK LOGISTICS LIMITED    09756957

H LIGHT HAULAGE LTD     07711052

KANDOLA KURIERS LIMITED    08824131

KINGSTOWN FOOD DISTRIBUTION LTD    10931064

KRZYSZTOF SZCZEPANIAK TRANSPORT LTD.    10521094

LAMBERTS COACHES (BECCLES) LIMITED    02053258

LEADER FREIGHT LIMITED    04128245

LEANCA EXPRESS DELIVERY LTD    11879114

LINAS LOGISTIC SERVICES LTD    09610506

M&M LOGISTICS (NOTTINGHAM) LTD    08198177

PRIMO COURIERS LTD    12193897

PJT EXPRESS LIMITED    10596505

RJG HAULAGE LIMITED    07448047

SILVER LINING COURIERS LIMITED    08067625

S J MURFIN TRANSPORT LIMITED    04939518

SSK LOGISTICS LTD    09902059

SWEENEY CIVIL ENGINEERING & HAULAGE LTD    12005618

TAMAR COURIERS LTD    05462518

THE MUSIC SHIPPING COMPANY LIMITED    05714679

UNITED VEHICLE HIRE LTD    09038620

+++++++++++++++++++++++++++++++++++


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.comIan.carrotte@icsmcredit.com

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


Tel 0844 854 1850 ___ Fax 01454 327 355
Privacy Policy   © ICSM All Rights Reserved