Driver shortage and loss of key customers forced haulier into administration, report concludes

A Redditch haulier closed down with the loss of 39 jobs after it lost two major customers amid an ongoing struggle to recruit drivers, according to its administrator.

S Walker Transport appointed Leonard Curtis to assist with winding down its business on 25 February, almost 19 years after it first began trading.

It held an international O-licence authorising a total of 35 HGVs and 39 trailers out of two depots and undertook a range of haulage work, including moving recyclable material and palletised goods.

In a report to the company’s creditors, the administrator said initially S Walker Transport traded well and built up a loyal customer base, but problems started in November 2019.

It lost a large customer, which had acquired its own haulage operation and this placed significant pressure on the company’s cashflow.

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• S Walker Transport ceases trading

At that time, the most recent set of financial results showed that it had made a pre-tax loss of £257,709 on revenues of £4.37m.

The report said: “In addition, the haulage industry has suffered in recent years due to difficulties in acquiring new and capable employees.

“This has particularly impacted this company, who have struggled to meet the demand and service level required, without a sufficient workforce to match it.”

To compound problems, in February this year S Walker Transport’s largest customer, Chip Chip, went into administration and led to its own subsequent administration later that month.

However, the administrator also said that on current information it was anticipated that former employees and unsecured creditors would receive a dividend.