A major ransomware attack on KNP Logistics was a key contributor to the group’s demise, administrators have revealed.
According to administrators FRP Advisory, KNP Logistics Group, which includes subsidiaries Knights of Old, Nelson Distribution, Steve Porter Transport and Merlin Supply Chain Solutions, suffered a major ransomware attack in June this year.
The cyber attack hit key systems, processes and financial information and “adversely impacted” on the group’s financial position and its ability to secure additional investment and funding, FRP added.
Last week Nelson Distribution was acquired at the 11th hour by Kinaxia in a deal completed by the directors just before the company entered administration. Kinaxia’s purchase sees the group take on all 170 employees and the company’s business and assets.
However Knights of Old, KNP Logistics Group, Steve Porter Transport and Merlin Supply Chain Solutions are all currently in administration.
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In a statement FRP Advisory said: “With the exception of Nelson Distribution Limited, unfortunately the majority of the group’s employees have been made redundant, with a small group being temporarily retained to assist in the winding-down of operations. Regrettably, approximately 730 employees will be made redundant.”
Raj Mittal of FRP Advisory and joint administrator, said: “Despite being one of the UK’s largest privately owned logistics group, KNP fell victim of a ransomware attack earlier this year that caused significant disruption.
“Against a backdrop of challenging market conditions and without being able to secure urgent investment due to the attack, the business was unable to continue. We will support all affected staff through this difficult time.”
In its latest annual results to 31 May 2022, KNP Logistics saw turnover rise to £94.5m (2021: £76.5m) whilst pre-tax profit fell slightly to £1m (2021: £1.1m).
FRP Advisory said the administrators will be contacting creditors in due course. Enquiries from customers and interested parties can be directed to the relevant divisions at:
knightsofold@frpadvisory.com
nelsondistribution@frpadvisory.com
steveporter@frpadvisory.com
merlinsupply@frpadvisory.com
