Palletways bought Dalkeith for the second time this year, after it went into administration in August.
Scottish haulage company Dalkeith Transport and Storage has been acquired twice in two months by Palletways.
The pallet network bought Dalkeith on 27 July but was forced to put it into administration on 21 August after consulting with the haulier’s bankers. Once in administration, Palletways rebought the company for an undisclosed sum.
The sale closely follows the appointment of Palletways financial director Andrew Reynolds as director of Dalkeith Transport in June and the subsequent removal of MD Peter Wright and chairman Marshall Wright in July.
Dalkeith Transport, which was established in 1948, was a family firm that ran a fleet of 47 vehicles and 100 trailers from two depots in Newton-grange and Cumbernauld.
The company ended its 10-year partnership with Palletways in 2010 to become a shareholder member of Palletforce. It then rejoined Palletways in September 2012, expanding its coverage for the network in 2014.
This is not the first time Palletways has purchased a cash-strapped network member. In 2012 the network bought the assets of member Oxford Logistics (Milton) after the haulier went into voluntary liquidation.
A Palletways spokesman said: “We confirm that Palletways acquired Dalkeith Transport and Storage recently to enable the business to continue to play a key role in its network by providing first-class express distribution services across Europe.”
He added: “Following the acquisition, and after consultation with Dalkeith’s bankers, circumstances beyond our control made it legally necessary for the business to be placed into administration. The administrators wanted to sell the business as a going concern and, in the best interests of employees, customers and members, Palletways acquired the business to ensure it continued trading.
“This means the jobs of the 100 employees will be safeguarded and the business can continue to serve its customers while ensuring the continued stability of our distribution network.”
Administrator Rob Caven of Grant Thornton said the company had called in the administrator after experiencing cashflow problems.
“Dalkeith had been struggling for sometime,” he said. “The company ran out of money and was not able to pay for its liabilities and so went into administration.” He confirmed that all 100 staff will be transferred to Palletways under Tupe regulations and that the Newton-grange depot in Midlothian, which was owned by the company, will be sold separately.
