The new owners of AM Widdowson & Son, the Leicester haulier sold in a pre-pack deal, have ambitions to grow the business and are on the acquisition trail for more logistics firms.
Damion Davis, MD at Widdowson Logistics, said the haulier was now in a strong position to expand.
It comes after a turbulent two years in which it first entered into a Company Voluntary Arrangement (CVA) and then administration when it fell into arrears with both its CVA contributions and with its obligations to HMRC.
Talking to Motortransport.co.uk about the events that led to the pre-pack, Davis – who was MD at Davis Haulage but resigned from the post in April - said capital investment firm HLD Group, which is registered in Malta, injected cash to enable staff to be paid and for the CVA to be achieved.
“After the CVA, we assessed the business: contracts, lease on vehicles the whole aspect of the business,” he said.
“It was realised some of the problems were far larger than anticipated.
“In terms of transport we over planned things; we took too much work on, there was unnecessary stress. We are being a bit more selective in what we do now, not being too greedy.
"We have also implemented new transport systems, warehouse management systems, its slicker, more efficient,” Davis said.
Expansion plans
AM Widdowson entered administration on 6 July and was sold on the same day for £2.5m to Widdowson Logistics, a newly formed company in the Davis Haulage Group stable, whose ultimate owner is HLD.
Davis Haulage Group also owns chilled transport operation Davis Haulage, which operates from an industrial park in Crewe, near junction 16 of the M6 and is also subject to a CVA.
Davis said loss-making contracts have now been re-negotiated, the order book is strong and there is now a renewed focus on serving its customers
“They have been very supportive, they understand that these things happen,” he added. “It’s important we ensure we continue that good service.
“The plan is to grow and expand the business. HLD is open to more business,” he said.
