Sheerness-based car transporter Eulos.EU entered administration after refinancing its funding facilities in anticipation of a new contract – and then being told it had not won the deal.

The fall into insolvency of the transport company, which also had offices in Northampton and Lithuania, is outlined in a report to creditors following the appointment of administrators at FRP on 23 December.

Eulos.EU had been trading for a decade and was a UK based finished vehicle distributor. FRP said that the company had become loss making, but during 2019 it had expected to be awarded a further contract with a major customer on improved terms, which its management expected would return the business to profitability.

It refinanced its funding facilities with Hitachi but FRP said shortly after this the company was told it had been unsuccessful in securing the contract.

The report said: “The impact of the contract and the downturn in new vehicle volumes resulted in the company remaining loss making and experiencing significant creditor pressure.”

Efforts were then made to sell the business, which held an international licence for 25 HGVs and 25 trailers at an operating centre in Sheerness docks.

“FRP did receive an offer for the business on a solvent basis, however following numerous discussions and due diligence being undertaken by the interested party they withdrew their interest on 17 December 2019 citing concerns around the viability and working capital requirement of the business.”

FRP said it anticipated that former employees would receive a dividend estimated at 14p in the pound and that there are insufficient funds to pay unsecured creditors.

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