All 39 jobs have been lost at family transport firm Mann Haulage in Chester-le-Street after the company was forced to close down last month.
Liquidators from FRP Advisory were appointed to the business on 19 May after it lost its battle with financial difficulties that stemmed back two years.
The haulier had operated out of the North East since 2004 and held an O-licence authorising 12 HGVs and 24 trailers and ran a mixed fleet of 7.5-tonne, 18-tonne and 26-tonne rigids and artics.
FRP said it was initially appointed to arrange a company voluntary arrangement (CVA), which was approved by its creditors in August 2019 and provided for the restructuring of its business.
But in a statement, the liquidator said: “Despite a relocation of the business from Gateshead to shared premises on Drum Industrial Estate, Chester-le-Street, and efforts to increase the efficiency of its operations, increased costs within its supply chain meant the terms of the CVA couldn’t be met.
“As a consequence, the business was unable to continue trading and is in the process of being liquidated.
“Regrettably, all 39 jobs have been made redundant as a result of the liquidation.”
Martyn Pullin, joint liquidator and partner at FRP, said: “Mann Haulage had established a positive position in the market prior to requiring support last year in relation to a number of loss-making contracts.
“Despite the directors’ best efforts to restore the business to a stronger financial footing, ongoing supplier inflation and rising maintenance costs resulted in the further deterioration of its margins.”