Creditors of Bedfords Group facing £5m shortfall, according to KPMG

Creditors of Birstall, West Yorkshire-based Bedfords Group could be owed more than £5m, according to estimates by administrators at KPMG.

The Palletforce founding member company, which employed 84 staff and specialised in transporting printing materials, packaging and homeware, entered administration in March following cash flow difficulties.

Days later, RPL Transport, which was purchased by Bedfords in 2014, followed its parent company into administration.

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According to KPMG, there is an estimated shortfall in relation to unsecured creditors of Bedfords of around £5m, with a further £192,000 shortfall to the fixed charge holders.

It also calculates that there could be a £747,000 deficiency in regards to creditors of RPL Transport.

Of the £3m estimated to be owed to Bedfords’ trade creditors, KPMG lists Palletforce as being owed £65,000 in “hub charges”.

A Palletforce spokesman told motortransport.co.uk that its current membership was “still easily capable of covering the Bedfords and RPL areas."

He added: “However, there are additional new members joining in the second half of the year”.