Inverness-based Caledonian Logistics has called in the administrators, just three years after being acquired by Staffordshire-based company Drac Logistics.
The company blamed “challenging trading” conditions and a lack of funding support from its parent company.
Caledonian Logistics employs around 130 staff and has an operating licence for 80 trucks and 103 trailers. The Palletways member has depots in Inverness, Cumbernauld, Oldmeldrum and Kintore.
Joint administrators Donald McNaught and Graeme Bain of Glasgow-based accountancy firm Johnston Carmichael were appointed by Caledonian Logistics on 28 November.
A spokesperson for Johnston Carmichael confirmed the appointment of the joint administrators and added: “This follows a period of challenging trading after the company was acquired in October 2022 which was subsidised by its parent company.
“While the company had successfully cut costs and increased turnover, its return to profitability required ongoing funding by its parent company. The company recently attempted to sell the company or the underlying business and assets, but these efforts were unsuccessful and the company ceased trading prior to administration.
“Fortunately, the large majority of jobs have been retained as a result of new operators picking up the routes the company serviced with the additional benefit of minimising the impact on customers.”
Caledonian Logistics was bought by Drac Logistics, which trades under the name of Drac Global, for an undisclosed sum in October 2022, as a result of Caledonian owner Derek Mitchell’s decision to retire from the business.
Drac Logistics said at the time of the acquisition that it planned to set up a Caledonian Logistics container haulage division, based in Grangemouth and Aberdeen, and invest £600,000 in an additional fleet of 10 vehicles and 14 skeletal trailers.
MT has learnt that Caledonian Logistics’ contract with Palletways was taken over by Aberdeen-based family firm GS Light Haulage, ten days before Caledonian Logistics fell into administration.
In a statement GS Light Haulage said: “With the regrettable downfall of Caledonian Logistics Ltd, an opportunity to grow GS came with the offer of a new contract with Palletways.
“As at 18th November 2024, GS Light Haulage Ltd agreed new terms with Palletways and became a fully paid up member within the Palletways network, thus securing jobs that would have otherwise been lost with the demise of Caledonian Logistics Ltd.
“GS Haulage Ltd trade also as GS Palletwise and retain the rights to the Caledonian Logistics name.
“GS Light Haulage are delighted to play a huge part in saving so many jobs and look forward to working with staff and customers new and old in what is hoped to be a bright future.”
A spokesman at the company said the Palletways contract amounted to around half of Caledonian Logistics’ business and that “around 50-60 jobs” at Caledonian Logistics had been saved by the transaction.
Caledonian Logistics’ most recent annual results, for the year to 30 April 30 2022, reveal that while turnover rose to £15.2m, up from just under £14m a year earlier, the company made a pre-tax loss of £872,108, down from a pre-tax profit of £134,470 the year before.
Request for comment from Drac Logistics has yet to receive a response.
