Immingham’s L&M Transport (UK) had traded successfully for more than 13 years before falling victim to the Covid pandemic, according to a creditor’s report.
The haulier launched in 2007, having previously operated as a sole trader, and provided freight services to customers around the UK, as well as serving the nearby ports of Immingham, Killingholme and Hull.
It held a standard international licence authorising a total of 18 HGVs running out of two operating centres and employed around 22 members of staff.
Administrator Begbies Traynor said problems only began to emerge at the company in 2020 when the Covid-19 pandemic began.
It struggled amid the numerous government imposed lockdowns and so it took advantage of the bounce back loan scheme in order to access finance more quickly taking out just over £24,000.
“As the company continued trading into 2022 and trying to recover from the effects of the Covid pandemic, the increase in the cost of living also had a large impact,” said the administrator.
“The rise in inflation meant that staffing costs had increased at a time when the bounce back loan repayments had become due and the HM Revenue and Customs debt for VAT and PAYE was mounting.
“There was an increase in all costs in general as a result, which had a large negative impact on the company’s cashflow.”
Begbies Traynor said L&M Transport fell behind with the loan repayments and the HMRC debts, which grew to £251,000 and it eventually entered administration on 12 February.
Begbies said unsecured creditor claims are around £360,000: “Based upon realisations to date and estimated future realisations, there will be insufficient funds available to enable a dividend to be paid to the unsecured creditors,” it added.
