Almost 100 trade creditors of a Northamptonshire haulage firm that collapsed in the summer are owed nearly £1m, according to its administrator.
CTS Transport Group in Kettering ceased trading in August, 20 years after the family firm was first launched.
It operated 41 HGVs and 41 trailers out of its Brigstock operating centre and at the time of its insolvency employed 30 staff.
According to administrator Forvis Mazars LLP, the containerised goods haulier flourished during Covid due to increased demand, but as the work increased so did operating costs with demand for drivers significantly increasing wages and bonuses to maintain sufficient staff.
As the effects of the pandemic eased so did the work and so the company’s director decided to expand the business by opening another site in Felixstowe.
This resulted in rapid growth and turnover increased by 250%, but it also resulted in a cash flow squeeze.
In a report to creditors, the administrator said: “The Felixstowe operation was closed in March 2023 following the unexpected and sudden resignation of the staff that were located there. This significantly disrupted the business.”
Forvis Mazars said disruption continued throughout 2023 as the rates charged by hauliers fell and work slowed down.
It added that the Red Sea crisis caused delays in container ships arriving in the UK, which resulted in work continuing to decline.
Eventually, CTS Transport ceased trading on 9 August and all employees were made redundant.
The administrator said trade creditors are estimated to be owed more than £900,000 and employees £231,000 in redundancy and pay.
“Based on current projections, it will be unlikely there will be sufficient realisations to enable a dividend to unsecured creditors,” it said.
