The pre-pack sale of AE Chilled in August, caused largely by the collapse of its key customer UK Salads, cost £100,000, its administrator has revealed.
The temperature controlled distribution firm had experienced significant growth and increased its fleet size before the insolvency of its customer in February 2024 hit its profit margins.
In a report to creditors, Begbies Traynor said AE Chilled’s European branch had also become less economical due to tax restrictions on trade which resulted in relatively low levels of revenue being generated.
It conducted a marketing campaign to sell the business, which operated 50 HGVs and 60 trailers, and said it received three initial expressions of interest, and this led to more detailed discussions taking place.
“Ultimately, only two bids were received,” the report added. “One from Hendrick European and one from the purchaser.”
The purchaser – Big Transport Kent - shares directors with AE Chilled and the administrator said the £100,000 price tag included its goodwill (£79,000), plant and machinery (£19,800) and stock (£1,000).
It added that the consideration was paid in full on completion of the transaction and it is understood the deal saved all 62 jobs.
