Aspray Group founder Pat Laight has severed ties with the business after its new owners, Bushell Investment Group, applied for a company voluntary arrangement (CVA), motortransport.co.uk can reveal.
Ownership of the group, which consists of Aspray24, Aspray Logistics and Aspray International, was transferred to Bushell Investment Group on 5 March via holding company Bullamasay XL.
Speaking at the time, Bushell Investment Group CEO Lee Bushell promised the takeover would "ensure this business reaches its full potential".
Laight established Aspray in December 1982 with two trucks. Today it employs more than 600 people and operates from a 16-acre freehold site in Willenhall, Walsall and 12 other locations.
However, following the departure of his son Stuart from the business last year, Laight had been looking to secure the loss-making group’s future with a sale and cash injection.
He told motortransport.co.uk that the new owners had promised around £2m to keep the business going. "It is a big employer… and that was one of the main reasons for selling it to him [Bushell] as he guaranteed to me that he would keep the people employed and invest," Laight said.
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“Then last week [1 April] they said they were putting the business into a CVA. And I said ‘pardon?’"
Laight told motortransport.co.uk that while a CVA had been discussed as one of the options available for Aspray Group to take ahead of the sale of the business, he was genuinely shocked that it had in the end become the preferred course of action.
Laight said that he had as of 6 March received the first instalment in regards the purchase of the business as set out in the sale agreement.
He said however that he was not a salaried member of the business and had lent his name to ensure continuity while Bushell looked to bring a manager in to run it day to day.
However, Laight has decided not to act as chairman of Aspray Group as reported at the time of the acquisition last month.
The CVA proposal
A spokeswoman for the transport business told motortransport.co.uk: “As you are aware, Bushell Investment Group recently acquired the Aspray Group.
"Since the acquisition, we have focused our efforts on initiatives to stabilise the business, which include restructuring, as well as investing funds and expertise.
"There are a number of legacy issues which we still need to address, and we propose to address these via a CVA.
"It is important to note that it remains business as usual at Aspray, and that customers and trade suppliers will be unaffected by this process.
“We are confident that these steps will ensure that we put the company in a strong financial position going forward.”
A meeting to finalise the CVA will be held on the 23 April.
RSM Restructuring Advisory and Shoosmiths are advising on the process.
Aspray, which it its most recently published accounts for the year ending 30 June 2017, made a pre-tax loss of £378,754, has remained true to its roots supplying SMEs in the lock, hardware and fastener products sectors, as well as small engineering firms.
This, according to its website, covered everything from a Jiffy bag to a full load, including irregular and ugly freight.
A source close to the business said it had come under pressure in recent years from the emergence of the “Amazon carriers” moving packages for nominal amounts.
That has left it handling 'ugly' freight, which is notorious difficult to price to ensure a profitable business.
