Transport and logistics operations at The Russell Group have not been affected by recent financial problems at group company Icetech Freezers, the firm has stated.
Finance director Ken Macleod told Motortransport.co.uk that problems at Icetech, which went into provisional liquidation on 22 April, would not have any major effect on the group’s transport and logistics firm, John G Russell (Transport), as the latter had “very limited direct involvement” with the Icetech freezer manufacturing operation and was not even the firm’s main transport provider. “It’s business as usual [at John G Russell],” he confirmed.
Icetech, which The Russell Group acquired in 2005, starting running into trouble with the demise of Comet last November. At the time, Comet owed the firm around £900,000 and accounted for some 50% of its business, said Macleod. Its problems were subsequently compounded when cheap stock purchased from Comet’s administrators was brought to market at extremely low prices, he said.
Around 70 jobs at Icetech – which accounted for about 15% of group turnover last year - are under threat, he confirmed.
Although The Russell Group had been “desperately keen” to see it emerge from its problems, Icetech’s descent into provisional liquidation will provide the group with “an opportunity to focus on our logistics and divert resources to where we need them going forward,” he added.
