Cardiff Container Link entered into administration after “key personnel” at the company became ill and were absent from the business.
The background to the Roath Docks-based container haulier’s financial woes is contained in a report to creditors, which explained that it had expanded and traded well up until January 2020.
At this point, after five years of trading, the company began to experience cash flow constraints, which administrators at RSM Restructuring said was “due to a variety of factors, including the absence from the business of key personnel through illness”.
Cardiff Container Link was then issued with a county court judgment in respect of an unpaid debt of £8,140, followed by two more in April and a winding-up petition was presented at court in April.
The company attempted to manage its financial position, however cash flow remained constrained and arrears accrued in respect of vehicle lease hire agreements.
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As a result, some vehicles were repossessed, which damaged revenues further.
Its invoice factoring company, Ultimate, then attempted to engage with the company’s management as it was operating outside of its agreed terms, but the report said: “However, due to a lack of management information this was not possible.”
Ultimate issued a formal demand for repayment, totalling £560,000 and it also secured the appointment of RSM in order to protect the company’s assets and its position as a secured creditor.
It entered administration on 1 May and all employees were made redundant.
The haulier operated a fleet of 13 DAF HGVs.
