Anglesey-based logistics and shipping company Gwynedd Shipping Limited has filed for administration this week, leaving scores of staff facing redundancy.
The Palletways member informed drivers and staff yesterday morning (15 January) that the company was closing its doors at its depots in Holyhead, Deeside and Newport.
The company has appointed James Andrew Saunders and Michael Vincent Lennon of Kroll Advisory as joint administrators.
Gwynedd Shipping, which was established in 1984, offers shipping, transport, warehousing and customs clearance services and specialises in the construction, steel and FMCG sectors.
The group operates from sites in Holyhead, Deeside, Newport, Dublin, Belfast and Birkenhead. It boasts a fleet of 650-plus trailers and is estimated to employ at least 50 staff, as well as a number of HGV owner drivers.
According to reports on social media staff were informed of the company’s demise yesterday morning.
One commentator on the Facebook group Loris Y Gogs/Trucks Around North Wales said that “drivers were called into the office today at 10.30am to be told that Gwynedd Shipping has ceased trading by the administrators and all staff (have) lost their jobs.”
The Facebook group has pledged to help Gwynedd Shipping drivers, many of whom are owner drivers, find other work
As news of the administration circulated there were unconfirmed reports on social media of parts of the company being taken over by another logistics firm and that other local and regional hauliers were already offering some of the drivers work.
It is unclear why the company was forced to file for administration in the courts this week. The company’s strategic review of its latest annual results for the year to 31 May 2022 - posted in February last year - said its directors had ”a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.”
It noted that the company had delivered a profit of £893,749 (2021: £246,256) and had net assets of £918,995 (2021: £25,246) but added that this included a net current liabilities position of £270,629 (2021: £949,731).
The report continued: ”The directors believe they have sufficient working capital and cash resources to meeting the day to day requirements of the business as well as meeting any debt facility repayments.
”This review takes account of the current economic climate and forecast results for the company. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.”
Local councillors and politicians expressed their concern for the company’s employees this week. An Isle of Anglesey County Council spokesperson said: “We are aware that the company has apparently entered into administration.
”We are currently trying to engage with the company to establish the current situation. The county council will provide what support it can to those affected, working in collaboration with Welsh Government and other partners.”
Rhun ap Iorwerth, Senedd member for Ynys Môn, said the situation was ”very unclear”, adding: ”We’re hearing reports of a company being in difficulties which is very worrying of course, but as of yet I’ve been unable to get hold of any further information.
”I’m making enquiries and waiting to hear back so that we can understand the full extent of what’s going on, and so that we can see what help can be sought. My thoughts at the moment are with the workers who face uncertainty this evening, and I encourage them to get in touch with me should they need any support.”
Virginia Crosbie, MP for Ynys Môn, said: “It’s always very concerning when a business closes and people could potentially lose their jobs. I have asked to be kept up to date with developments regarding the company and crucially whether it can be sold as a going concern.
”If any employee is worried or would like advice and support then please don’t hesitate to get in touch with me. The local JobCentre Plus and the DWP are on hand to help those who are looking for work or retraining opportunities.My office works very closely with both of them on the island.”
When MT contacted the company today (16 January) a spokesman declined to comment, adding that Gwynedd Shipping would be releasing a formal statement “either later today or tomorrow.”
