Gloucester parcels firm Lima collapsed as business dried up in pandemic

Gloucester-based parcel delivery firm Lima Logistics collapsed into administration as a direct result of the Covid-19 pandemic, its administrators have said.

In a report to creditors, Nicholas Simmonds and Chris Newell at Quantuma Advisory said the coronavirus and the subsequent lockdown earlier this year had consequences on the company that lasted much longer than anticipated.

It was incorporated in 2015 and had grown into a £300,000 turnover business before moving into premises in Churcham and then joining Pall-Ex in February 2020.

However, the lockdown in March made it impossible for the company to approach potential clients and it lost income from existing customers.

Quantuma said Lima Logistics reacted swiftly, seeking payment holidays and reduced payment plans and almost all spending was put on hold.

However, it was not entitled to a small business grant fund or any business rates relief and instead it had to secure a £50,000 ‘bounce back' loan.

The report said: “The directors believed that the business would recover, as its courier network service contracts had begun to return and Pall-Ex were committed to provide extra support and focus from their senior management and telemarketing department to new customers and existing customers.”

But it added: “Once it became clear that the company could no longer pay its debts as and when they fell due, the directors approached Quantuma Advisory for advice in August 2020.”

It entered administration on 22 September.

In October, fellow Pall-Ex member John Dinham Transport told motortransport.co.uk that it had purchased the business and intended to relocate staff.