Aspray Transport is to close its doors next Friday (16 August) with up to 449 jobs potentially at risk of redundancy after attempts to revive the business proved in vain, Motortransport.co.uk can reveal.
The Willenhall-based Aspray Group was acquired by Lee Bushell’s Bushell Investment Group in March.
Aspray Transport, the next-day delivery part of the group trading as Aspray24, was placed into a Company Voluntary Arrangement (CVA) on 23 April facing the prospect of being unable to pay debts as they became due.
At the time, Aspray owner Bushell Investment Group said 99% of the company’s trade suppliers had supported it, representing a clear “reflection of their support of the proposed turnaround strategy”.
It added that the CVA would be completed in six months or less and "trade suppliers will be paid in full on their normal trade terms".
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However, in June Motortransport.co.uk revealed that £1.9m of debt to certain creditors – described in the official document as those that were non-critical - was being written off with 65 jobs to be made redundant.
Owner Bushell Investment Group had promised in the proposal document a further £1m of working capital would be made available to the haulage business after the adoption of the CVA.
In a statement a company spokeswoman told Motortransport.co.uk: “Unfortunately, Aspray Transport has been experiencing trading difficulties for some time, due to a number of factors including rising fuel prices, adverse market conditions and the uncertainty linked to Brexit.
“To combat these issues, we initiated a CVA process, which was approved by the company’s creditors in April. However, due to the continued market decline it has become apparent that this will be insufficient in addressing the company’s poor trading performance.
“With these issues in mind, we have been working tirelessly to find a solution for the company, including seeking additional investment and speaking to potential purchasers.
“Regrettably, these have not been successful. We understand that this will be of concern to Aspray Transport employees and customers. We have informed them about the situation and will continue to keep them updated and supported on developments.”
Aspray Transport (Aspray24) is the next-day delivery arm of Aspray Group. It has 192 employees at its headquarters and main hub in Willenhall in the West Midlands, and a total of 449 employees across the UK.
An Aspray Transport employee said that most staff at the HQ expected to be laid off and they had been told the operation was 'not sustainable anymore'.
Group depots are located in Bristol, Cardiff, Plymouth, Rainham, Larkhall, Manchester, Featherstone, Greenford, Eastleigh, Washington, Thetford and Milton Keynes.
Aspray Logistics and Aspray International employees and customers, which represent the warehousing and logistics side of the business and were not part of the CVA, are not affected.
The company declined to comment further on how many of the 449 employed at Aspray Transport were at risk of redundancy and said further updates would be provided when it was able to do so.
