Temperature controlled distribution firm AE Chilled has been sold in a pre-pack administration deal, saving all 62 jobs and securing its future.
The acquisition by Big Transport Kent ensured the continuation of AE Chilled’s operations after “significant financial challenges” beset the haulage firm, according to its directors.
The company, which operated 50 HGVs and 60 trailers out of a Dover operating centre, said it had continued to show growth until February of this year when its largest customer, UK Salads, entered administration.
It resulted in AE Chilled enduring a substantial bad debt totalling hundreds of thousands of pounds.
It said UK Salads had forecast considerable growth in volumes during 2024 and AE Chilled had increased its fleet to facilitate this growth.
The loss of the contract severely impacted AE Chilled’s liquidity and future revenues and its directors had to inject £378,000 into the business to try and keep it afloat.
In a statement, the directors said: “Despite these efforts, further difficulties were encountered in June when it lost a significant EU contract.
“AE Chilled was unable to compete with European rates, leaving the business with a fleet it was unable to reduce.”
The companies approached Begbies Traynor for advice and following an assessment it was determined that a pre-pack sale was the most viable solution.
Following a marketing campaign, Big Transport Kent was the successful bidder. It shares two of the same directors, Aaron Oliver and Kevin Sands and it is backed and wholly owned by Peter Waddell, founder and majority shareholder of car dealership Big Motoring World.
“AE Chilled’s directors delivered substantial growth since its inception in 2020 and, but for prevailing circumstances, is expected to build on that going forward,” the statement added.
“With Mr Waddell’s ongoing support, Big Transport Kent will work with the existing management team to significantly improve upon the business’ existing coverage, diversify the services it provides and continue to deliver an excellent service for its existing valued customers.”
The pre-pack administration is also predicted to deliver a better outcome for AE Chilled’s creditors than would otherwise have been the case.
Oliver told Motor Transport: “The staff have given their all to AE Chilled in these difficult circumstances and we are extremely pleased to say that the sale of AE Chilled to Big Transport has saved the jobs of all 62 current employees.
“Domestic revenues have been sufficiently replaced to ensure that all drivers and supporting staff will retain their jobs moving forward with Big Transport Kent.”
He added: “The team here have been instrumental to the historical growth of AE Chilled and delivering the high standard of service we provide.
“With their dedication, we have been able to secure a future for the business.”
