Simpsons Logistics transferred 70 employees to another company when HMRC attempted to wind it up and agreements with APC Overnight and The Pallet Express (TPN) were cancelled, according to administrators.
In an effort to rescue the company’s trade, Simpsons Logistics in Chester le Street, moved all its staff over to Logistics (Teesside) at the end of August, before administrators were appointed on 19 September.
In a report compiled by RSM Restructuring Advisory and based on information provided by Simpsons’ directors, it said that the company was under financial pressure after an accounting error was discovered in August, resulting in an additional liability to HMRC of £150,000.
HMRC presented a winding-up petition against Simpsons Logistics for £325,480, but before the petition could be heard, staff transferred to the new business and then it went into administration.
The report said: “The company’s landlord then took possession of the property due to outstanding rent and other charges. We are advised the total arrears are circa £260,000.
“The only remaining assets were vehicles.”
RSM was able to sell the remaining assets to a connected party called Tetra Resource, although it said the ultimate sales contract was with Close Brothers Invoice Finance, for £83,900+VAT.
The administrator anticipated that unsecured creditors will receive a dividend.
Simpsons had also carried out work for Palletforce, which has been covered by BM Stafford and Elddis Transport.
