Staffordshire logistics firm Drac Logistics has filed a notice of intention (NOI) to appoint an administrator for the second time in two weeks.
The company’s first NOI was filed on 23 February and the second was filed today (9 March).
This latest move, via law firm DMH Stallard, triggers a second 10-day moratorium on creditor legal actions, giving the business more time to either restructure, sell, or avoid liquidation.
Drac Logistics, which has its headquarters in Stone in Staffordshire, was launched in 2009 by founders Alex Hayes, Gareth Evans and Allan Donaldson. It employs around 33 staff.
The company has two operating licences, which are currently under surrender, for a total of 22 trucks and 29 trailers.
Drac Logistics specialises in road, rail, air and sea freight, warehousing and inventory management, UK distribution, European groupage, worldwide customs and clearance services, and specialist divisions including oil and gas logistics and container maintenance and repair.
The business operates three warehouses in Stone, Rochdale and Oldmeldrum in Scotland, with a combined capacity of around 124,000sq ft.
According to Drac Logistics’ latest results, for the year to 31 March 2024, the company saw turnover fall to £16.7m (2023: ££29.5m) and reported a pre-tax loss of £757,635, down from a pre-tax profit of £2m in the previous year.
The business review to the results attributed the fall to a “challenging” year but said gross margins had improved “reflecting successful efforts in cost management and operational efficiency”.
Exceptional items during the year included the write-off of a balance of £826,067 “with a fellow group company which is in administration”, according to the business review of the results.
In December 2024 Drac subsidiary Caledonian Logistics went into administration, two years after it was acquired by Drac Logistics for an undisclosed sum in October 2022.
The Inverness-based company, which employed 133 staff, blamed “challenging trading” and a lack of funding from its parent company, at the time.
During Caledonian’s administration it emerged that, following the purchase, Drac’s board had identified extra costs that had not been divulged, according to the administrator.
This included a commitment entered into by Caledonian Logistics before the sale relating to “new trucks under a finance arrangement costing around £750,000”.
A request by MT for comment from Drac Logistics has yet to receive a response.
