The closure of a Solihull-based logistics firm due to soaring fuel prices and a fragile economy has resulted in more than 200 staff being made redundant.
Corporate Solutions (Logistics), which specialised in transporting goods for supermarkets, called in administrators on Monday (17 October) and after an accelerated sales process failed, it was forced to close down.
The company operated from sites in almost all the traffic areas, with seven licences authorising between six and 35 HGVs.
Its most recent set of accounts, for the year ending 30 June 2021, showed that the haulier was operating on very slim margins.
It had experienced a 5% reduction in turnover to £32.4m during the period and pre-tax profits had reduced by 2.9% to £322,000.
Raj Mittal and Arvinder Jit Singh, joint administrators at FRP, said the company had suffered from financial difficulties in recent months due to the loss of some long-standing contracts and continued pressure on profitability due to the rise in fuel prices and other input costs.
In a statement, they said: “The directors conducted an accelerated sale process to find a buyer for the business and bring in fresh investment.
“However, without any viable offers, the directors were forced to close the business.
"Regrettably, over 200 roles have since been made redundant.
“A handful of staff remain in the short term to assist with winding-up the business’ operations.”
Mittal, a partner at FRP, said: “Like many other businesses in the logistics sector, Corporate Solutions has had to contend with a rapidly rising cost base, not least driven by high fuel prices, as well as weak economic growth and fierce competition over contracts.
“The business was unsustainable without any further investment and, with the business having ceased to trade, we will now move towards realising its assets.
“Regrettably, almost all roles at the business have been made redundant,” he added.
“We have a team providing support for impacted staff as they make claims to the redundancy payments service during this difficult period.”