Union Unite has said that it is looking to work in a “positive and constructive manner” with the management at AM Widdowson & Son after it emerged that a recovery plan at the Leicester haulier would involve 50 redundancies.
Last week Motortransport.co.uk exclusively revealed that HMRC issued a winding-up petition against Widdowson in respect of £2.46m in unpaid VAT, PAYE and corporation tax. That petition has been adjourned until 6 July but a meeting is scheduled on 3 July for creditors to discuss a proposed CVA.
The company has a new shareholder in the shape of North West investment firm HLD Group, and the management at the firm have already outlined cost-saving measures after it emerged that it had lost contracts worth £5m, and mad losses of £18.7m over a 14 month period to the end of May 2015.
It said it will remove 30 vehicles from its fleet and make the drivers redundant, with a further 20 redundancies to be made in admin and warehousing.
A spokesman for Unite said: “We are aware that the company has made a considerable number of redundancies.
“At this stage, Unite is liaising with our members affected, and will be supporting them in every way possible in the days and weeks to come. We are led to believe that further information will be available on Friday (3 July) about the future of the company.
“Whatever is announced on Friday, we hope to meet with management and continue to work in a positive and constructive manner with the company on going forward.”
Meanwhile Palletways has confirmed that AM Widdowson & Son remains a member of the network.
Widdowson joined the network earlier this year, with MD Luis Zubialde saying that the network was looking forward to utilising Widdowson’s experience to grow its business across the East Midlands.
It is one of several new members to join Palletways this year, including Allelys General Haulage, D&P Haulage and Montgomery Transport Group.
