The new owner of Star Transport & Warehousing, the Norfolk haulage firm that appointed administrators on Monday, said he had assembled an experienced leadership team to drive the business forward and create growth.
Joe Barnard, founder of Total Logistix, told Motor Transport it had taken on all of the failed company’s staff, as well as purchased Star’s contracts, books and customers and he was now actively engaging with subcontractors owed money when the haulier collapsed into administration.
He added that staff would be getting “a considerable pay increase” and that he was aiming to create a £32m turnover business.
Star Transport and Warehousing was a company within the Bomfords Group and it snapped up some of Bomfords Haulage’s trucks, contracts and goodwill when it entered administration last year.
However, Star did not fare any better and it succumbed to administration this week when it appointed Kroll Advisory to the firm.
Total Logistix bought Star Transport and Warehousing in a pre-pack deal
Source: Total Logistix
Barnard said its failure was largely due to problems inherited from Bomfords Haulage and that Total Logistix had safeguarded over 100 jobs when it bought the business in a pre-pack deal struck with Kroll.
He said it originally entered negotiations to purchase the haulier four months ago but talks broke down and so it backed out.
“We are now actively engaging with subcontractors owed money,” Barnard said.
“We don’t want to see anyone in the industry get burned. We have all been in the industry for the last 10, 15, 20 years. We are about protecting them.”
He said it had obtained a licence from the traffic commissioner for 62 HGVs and 68 trailers and it also had Star’s 48,000sq ft warehouse.
The director said its cost to serve business model would ensure it could make a success: “I have put together a senior leadership team of individuals who are highly experienced in the logistics and finance fields,” he said.
“We automate a lot and use AI to streamline processes, whereas haulage is typically old school.
“We work closely with Rentals Direct and we hire vehicles off them. We can drive our vehicle costs down quite considerably.
“Our managers get a percentage budget and they have to micromanage it, rather than having one company-wide budget.
“We are increasing revenues,” he added. “We have already tendered for the best part of £7m of business and we will push up to a £32m business.
“Staff are also receiving a considerable pay increase, well above the national standard.”
Kroll was approached for comment.
