An online sale of assets belonging to an Oldham-based logistics firm that entered administration in June has raised around £45,000 – but creditors are still unlikely to be paid.
NBS Transport collapsed with the loss of 20 jobs, due to cash flow difficulties “exacerbated by a significant law-margin contract and slow customer payments,” according to the administrator.
The company provided pallet services, container freight forwarding and warehousing to the retail, manufacturing, construction and events sectors.
An associated company, NBS (Oldham) operated as a commercial garage and body shop, although in recent years its trade was carried out through the transport side of the business.
A report to creditors noted that some of both companies’ assets were stored at a third party location and that on or around 21 June five trailers subject to finance were stolen.
Administrator FRP Advisory added: “We have been liaising with the finance companies, the police and our insurers with a view to recovering the trailers and their value.”
FRP Advisory added that the majority of the company assets were realised in an online sale on 18 July and it estimated between £40,000 and £45,000 was raised.
However, the report also stated: “Based on the assumptions made in the estimated outcome statement, it is currently estimated that there will not be sufficient funds available to make a distribution to unsecured creditors.”
FRP’s estimated company creditor claims total £243,769.
