Birmingham contract haulier Contact Transport has gone into administration with 61 employees made redundant.
The company appointed administrators from RSM on 20 April and the business is now being wound down.
RSM said the company suffered losses following a drop in turnover volumes, high vehicle damage and insurance costs, as well as costs incurred in restructuring the business.
It was unable to raise additional working capital or funding to pay creditors and it had also been served with a winding-up petition by one of its suppliers.
Diana Frangou, RSM joint administrator said: “With cash flow constraints impacting upon the company’s trade, steps have been taken to protect its assets by way of an administration order.
“Due to the nature of the company’s business, trade has naturally wound-down as customers have quickly made alternative arrangements to protect continuity of supply, including the transfer of 79 of the company’s employees.
“We are currently assessing the rest of the company’s asset base with a view to maximising realisations for the benefit of creditors."
She added: “Regrettably, due to the cessation of operations we have had to make 61 employees redundant. Our team has been assisting those employees in order that their redundancy claims can be processed as efficiently as possible.”
An RSM spokesman said the 79 staff had transferred to an agency acting on behalf of one of its customers.
Contact Transport formed in 1980 as a small courier business for airline agents and eventually worked for clients including Amazon and UPS.
In 2015, it received a £500,000 investment from public-private partnership Finance Birmingham to help the company continue growing after it experienced a 60% increase in turnover in just 12 months.
It had an international licence authorising 76 HGVs out of six depots in the midlands.
A report from Begbies Traynor has warned that the logistics sector is struggling financially.
