Bedworth Haulage was sold for less than £17,000 in a pre-pack deal that saved 21 jobs, after it went into administration last month.
In a report to creditors outlining why the Warwick-shire temperature-controlled haulier failed in January after hitting a turnover of £10.5m in 2015, administrator Quantuma said the firm suffered “squeezed margins” due to fleet costs and unprofitable work.
In 2015, a continental company Bedworth worked with removed a minimum guarantee for miles per vehicle per week from its agreement, resulting in Bedworth suffering a shortfall.
In addition, an insurance dispute with this customer, increased competition, and uncertainty concerning the EU referendum hit sales and it fell into arrears with creditors.
A CVA was approved in February 2017, but it struggled to keep up with its obligations and entered administration on 25 January. The administrator said an immediate sale of the company “achieved the best available outcome for creditors”.
C4-Safety bought the goodwill, equipment and business records for £16,794.
