More than 100 tanker drivers, linked to the collapsed Prax Group’s North Killingholme oil refinery, have been made redundant with immediate effect, administrators have confirmed today (8 July).
Axis Logistics, which managed Prax Group’s logistics operations, including deliveries to petrol station forecourts and airports. entered into administration yesterday (7 July), just over a a week after the owners of the Lindsey Oil Refinery called in the administrators.
Teneo Financial Advisory, which is acting as the administrator for Axis Logistics, has confirmed that the majority of Axis Logistics 137 staff have been made redundant with immediate effect. This is separate to the 400 staff who work at the oil refinery who have also been made redundant.
In a statement the administrators said that Axis had “suffered operational challenges as a result of the wider group insolvencies”, which had resulted in its administration.
It added: “Unfortunately, after carefully assessing all available options, the administrators concluded it is not possible to continue to trade the Axis business.
“Regrettably, the majority of the company’s 137 employees have been made redundant immediately upon appointment, with a small number of employees being retained for a limited period to support the orderly closure of the business.”
Staff are being helped by Teneo’s specialist employee team to make apply for redundancy payments from the Redundancy Payments Service.
Teneo said the company’s transport fleet will be sold off by the administrators to raise funds.
The Community Union, which represents the drivers, said all 120 Axis Logistics tanker drivers have been told they are being made redundant, adding that the drivers “deserved far better.”
Around 50 of the tanker drivers are based at Immingham, with 25 to 30 in Thurrock, a similar number in Kingsbury and about 10 in Scotland.
A Community spokesperson said: ““We understand that this afternoon our members at Axis Logistics in Immingham were called to a meeting with management and were informed that they would be being made redundant. This is devastating news, and has come as a shock to all of us.
“Tonight we are seeking further information from the administrators on next steps, and we will be communicating this to our members as soon as we know more.
“This will be an incredibly worrying time for Axis Logstics’ dedicated workforce who deserve far better. We’d encourage all affected members to get in touch, and we will continue to do all we can to support them at this difficult time.”
These latest redundancies follow news at the weekend that a number of petrol stations around Lincolnshire, supplied by another company within Prax Group, had run out of fuel.
The government moved quickly to allay fears of a fuel shortage with the Department for Energy Security and Net Zero (DESNZ) announcing last Friday that an agreement had been reached to resume deliveries in and out of the site and to “ ensure continued safe operations at the site.”
The DESNZ statement added: “The UK is well supplied with fuel – the site is right next door to one of the biggest and most efficient refineries in the country and stock levels are normal across the UK.”
Prax Group went into administration on 30 June. The company has oil field interests in the Shetlands and owns around 200 petrol stations, through its Breeze and Harvest Energy brands, as well as the Lindsey refinery in North Lincolnshire.
A separate winding-up order has been issued against the Lindsey oil refinery and its related businesses.
The UK’s Official Receiver was appointed as liquidator for Prax Lindsey Oil Refinery Limited, Prax Storage Lindsey Limited, and Prax Terminals Killingholme Limited.
Teneo was appointed as administrators for State Oil Ltd, the parent company of Prax Group, and Prax Treasury Limited.
FTI Consulting LLP personnel were appointed as special managers of the Prax Lindsey, Terminal and Storage companies, to assist with their liquidations.
Prax Group acquired Lindsey oil refinery from Total in 2021. Financial reports between Prax’s purchase of Lindsey Oil Refinery in 2021 and February 2024 show the refinery recorded losses of approximately £75m.
