The administrator for North Lanarkshire-based JAD Trans Scotland said the company first started to struggle financially in June, before its factoring company began to limit its facility.
French Duncan LLP was appointed to handle its affairs on 10 November after it had accrued significant debts which it was no longer able to service.
In a report to creditors, the administrator said the company was formed in 2019 and traded profitably, employing 14 staff.
However, by the summer of 2023 the firm began to struggle to make certain jobs profitable and it came under pressure from its floating charge holder and factoring business Bibby:
“Bibby began to limit the facility available to the company in June 2023,” it said.
“The directors of the company made significant efforts in a competitive marketplace to return the company to profitability and maintain the levels of cash flow required to continue the business.
“However, the company had accrued significant debts which it was unable to service and on realisation that the company would not be able to pay its staff the directors took the decision to cease trading the company.”
The haulier held an international licence authorising a total of 20 HGVs and 21 trailers running out of two operating centres in Airdrie.
The administrator added that it was now attempting to realise property to make a distribution to one or more secured preferential creditors.
Unsecured non-preferential creditors are estimated to be owed around £1.2m.
