An Avonmouth-based haulier ceased trading after losing a major customer that had relocated from the Bristol area, with Pall-Ex subsequently terminating its membership after the business confirmed it could no longer continue operating.
David Kemp and Richard Hunt of Exigen Group were appointed joint administrators of UK Freight Services Ltd on 30 July.
Pall-Ex said UK Freight Services had informed it that the loss of the major customer had left the business unable to continue trading and that its membership was subsequently terminated because the network service could no longer be provided.
The pallet network said it had supported the business and remained a significant creditor.
Exigen said UK Freight Services had been under “significant financial pressure” and had been “heavily reliant” on the Pall-Ex network. It said the loss of the membership had a significant impact on the company’s ability to operate.
The administrator also cited wider pressures affecting the haulage sector, including rising fuel and vehicle costs, margin pressure and difficulties around driver availability.
A Pall-Ex spokesperson said: “We work closely with our independent regional members, providing operational, financial and commercial support where appropriate.
“Our shareholder members are essential to the success of our network, and it’s unfortunate when a regional partner is unable to overcome wider pressures facing their business.”
Pall-Ex said it had taken “proactive and positive action” to provide service continuity for customers and strengthen its network in the area.
Exigen said a third-party subtenant had been allowed to occupy the premises while alternative arrangements were found to minimise disruption.
Administrator David Kemp said the case highlighted the importance of understanding reliance on key commercial relationships and having contingency plans when an important customer, supplier or network relationship changes unexpectedly.
Exigen expects asset realisations to repay secured creditors in full, with distributions expected for preferential creditors including employees and HMRC.
