Administrators handling the affairs of County Durham haulier Simpsons Logistics said it had stopped trading due to a combination of cash flow issues, a customer dispute and a winding up petition.
The former Palletforce member and independent carrier of parcels and pallets entered administration in September, but according to consultants at RSM, 70 staff transferred to Logistics (Teesside) in August. The administrator has described the process as technically a pre-pack administration due to its speed.
The following month, Simpsons Logistics’ assets, including motor vehicles and associated machinery, were sold to Close Brothers Invoice Finance.
An RSM spokeswoman said Simpsons had been facing a winding up petition from HMRC, as well as an ongoing customer dispute and cash flow issues, meaning that it could no longer continue to trade.
Read more
- Lockwood Haulage enjoys strong year ahead of warehousing expansion in 2019
- Elddis Transport joins the Palletforce network
- Palletforce moves record number of pallets and achieves new turnover high
Matthew Higgins, joint administrator, added: “Regrettably, there was no prospect of a sale as a going concern, but the asset sale has been completed to result in a financial return to creditors.
“All employees have been transferred to a local business Logistics (Teesside) Limited.”
A spokesman for Palletforce confirmed that BM Stafford and Elddis Transport were now covering the areas previously supported by Simpsons Logistics.
