A young entrepreneur who set up a haulage firm in Malton when he was just 17 had to contend with angry creditors at his home address when the firm hit financial problems.
Charles Morgan Transport entered administration on 4 July, seven years after it was first launched, after increasing overheads and a squeeze on profit margins struck the Yorkshire company.
The company traded profitably in 2020 and 2021, but it made a pre-tax loss in the year ending 31 March 2022 of £37,000.
In a report to creditors, administrator Philip Booth of Booth & Co, said that the haulier had grown quickly and could not maintain trade at its current level.
He said director and sole shareholder Charles Morgan had been unable to take a regular wage in order to try and alleviate cashflow to pay staff and the haulier had also fallen into significant arrears with HM Revenue & Customs.
A restructuring plan was agreed, as well as a time to pay arrangement with HMRC, but the company continued to struggle financially and Morgan eventually conceded that a creditors’ voluntary liquidation would prevent further liabilities accruing and enable an orderly sale of assets.
However, the report said: “Unfortunately, the close down of the company did not go smoothly and the company ceasing to trade led to certain creditors attending the premises and removing items in order to cover their debts.
“Several of the company’s financed vehicles were damaged as parts were removed from them.”
Booth said that the landlord of the premises Charles Morgan traded from changed the locks in order to prevent further disruption, but he added: “The action of changing the locks however meant that gathering information required for the liquidation became difficult.
“The director also faced certain creditors and finance providers attending his home address to demand repayment of sums due.
“The director’s family became concerned at the level of creditor interaction, particularly the effect this could have on the director, his partner and newborn child.”
Instead, the company was placed into administration; Booth said this was the quickest insolvency process available to regain control of the deteriorating situation.
Charles Morgan Transport held a standard international licence authorising a total of 20 HGVs and 22 trailers running out of two bases in Malton and Full Sutton.
The licence was revoked by the traffic commissioner last month.