One of the firms appointed to take on some of the postcode area of collapsed Palletline Logistics (Midlands) has entered a pre-pack administration.
Palletline network member Task Force Movement & Storage entered administration, alongside sister firm Laplock Securities, on 5 August.
Administrator PricewaterhouseCoopers (PwC) completed the sale of the firms, including the trading name of Task Force Movement and Storage, the next day to Mission Logistics. The firms share common directors: Stephen Allen and Carl Bowcock.
A PwC statement said: “The companies’ trading under-performance, coupled with a large debt when the business was acquired in 2008, led to cashflow pressures. The companies were unable to settle their day-to-day liabilities when they fell due.”
However, MT understands that a sudden decision by Task Force’s invoice discounting provider to slash its funding advance played a part in forcing the operator down the pre-pack route.
Task Force ran 50 vehicles and 20 trailers at its Witham Road, Essex site, as well as 12 vehicles and six trailers at Electra Park, Birmingham. Its successor, Mission Logistics, has applications pending for two new O-licences.
PwC said 85 employees had transferred across to the new business.
Palletline MD Kevin Buchanan told MT that “they came to us and said what they intended to do”. He said given the unusual circumstances the network had stood by Task Force but the situation should be viewed as a one-off.
Task Force made a turnover of £7.98m and pre-tax profit of £84,591 in the year to 30 April 2012. Total liabilities stood at £2.1m. It took on some of the postcode of Palletline Logistics (Midlands) when the haulier collapsed in July.
PwC said it was unknown how much would be available for creditors, as the “majority of realisations will come from book debts”, which they are still processing.
MT was unable to contact Stephen Allen.
