TT Express (Oldham) has been sold to John Raymond Transport in a pre-pack deal after it went into administration last week (15 September).
The 40-year-old business appointed administrator KPMG the same day, which immediately transferred the assets and 56 employees to an unconnected party – TT Express Group.
Both TT Express and John Raymond Transport confirmed the south Wales haulier was behind the acquisition.
In its most recent results for the year to 30 March 2016, TT Express recorded a pre-tax loss of £42,848. This compared with the previous year’s profit of £260,697.
The director’s report attributed this to a drop in turnover after a steep decrease in work for one of its biggest customers, as well as a costly management restructure.
However, the former owner of TT Express, David Taylor, told MT the business collapsed because it was unable to meet mortgage payments for its Woodstock depot.
The haulier bought the site in 2007 with financial support from Clydesdale Yorkshire Bank (CYBG). However, Taylor said the bank withdrew funding when the recession hit in 2008, leaving the business to shoulder the debt. “Without this, it would have been a healthy business,” he told MT.
Taylor said attempts to restructure the debt with CYBG nine months ago were refused and that the bank “forced” TT Express into a Law of Property Act receivership.
Under the receivership, CYBG assumed ownership of the Woodstock depot, which it is in the process of selling to a third party.
A CYBG spokeswoman said it had carried out an investigation and believed it offered TT Express a fair outcome. “We have been working with the customer for a number of years to assist it to reach a stable position and avoid it being placed into administration by another creditor.”
John Raymond Transport 'pleased' to acquire business
In a statement John Raymond Transport, which is part of the Nolan Transport Group, said it was pleased to acquire the £6.5m turnover TT Express (Oldham).
Paul Johns, MD of John Raymond Transport, said: "TT Express is a fantastic business with a great heritage, which unfortunately has suffered through unforeseen cash flow difficulties.
"JRT and Nolan Group have been looking to expand its business in the UK and an operation in the North West is an obvious location, which complements our current depots in Runcorn, Cannock, Rugby, Swindon, Aylesford and Bridgend. Both business's work in the same FMCG sector and there are obvious synergies for JRT and the Nolan Group to develop."
The deal sees JRT gain 50 drivers, 50 tractor units and 100 trailers.
