Stricken South Yorkshire haulier McGregor Logistics has been sold in a pre-pack deal for £1.7m to an unconnected business, saving dozens of jobs.
The deal includes the new company, McGregor Logistics (North), taking out a 12-month licence to occupy deal at the company’s large G Park warehousing facility in Doncaster, as well as its small satellite office in Cardiff.
The administrator for McGregor Logistics, Forvis Mazars, said the company’s expansion into the G Park premises in November 2022 was a significant step for the haulier and it expected the move to allow it to grow revenue with the additional capacity.
However, soon afterwards it lost a key customer contract, which impacted its revenues and cash flow and this was compounded by the significant rent and lease costs at the site.
McGregor Logistics then lost a second significant contract and so it engaged Forvis Mazars to place the business in administration.
Two companies put forward offers to purchase the company; one was connected to the haulier and the second was the eventual purchaser.
The sale to McGregor Logistics (North) went through on 30 October, at which point the administrator told staff that 79 of them would transfer to the new company, but 23 would be made redundant immediately.
In addition, the new company also has the option of acquiring any of McGregor’s unencumbered vehicles within 20 working days at prices specified with the asset purchase agreement. If it buys all of the fleet then the price has been set at almost £503,000.
In a report to creditors, the administrator said: “The sale ensures continued customer service, which is key to maximising debtor realisations and the overall value significantly exceeds the expected level of realisations that would be achieved in the only alternative course of action being a closure of the business.”
McGregor Logistics was incorporated in 2004 and operated curtain sided trailers, walking floor trailers, refrigerated box trailers and low loaders.
As well as offering logistics, warehousing and pallet work, it specialised in the transport of biomass fuel and renewable energy products.
