Aberdeenshire haulier VG Mathers has ceased trading and entered liquidation, citing an “unprecedented squeeze” from rising fuel and insurance costs, increased compliance burdens and higher vehicle maintenance expenses.
Michael Reid, head of insolvency services in Scotland at MHA, has been appointed liquidator of the family-run business, which was founded by Vic Mathers in 1968.
The company operated from Cottown Garage in Kintore and provided haulage services alongside vehicle inspection and repair work.It has an operating licence for seven trucks and 12 trailers.
Director Colin Mathers, son of the founder, said the decision to close - which has seen all seven staff members made redundant - had been taken with a “heavy heart” following a prolonged period of difficult trading conditions.
“For years, our team has poured everything into keeping our wheels turning, but we have ultimately been overwhelmed by a relentless series of challenges,” he said.
He added: "We fought hard to absorb these costs, but the compounding pressure severely choked our cash flow."
“Without the financial cushion to withstand any payment issues or fluctuating customer demand, we reached a point where continuing to trade became impossible.”
The company's most recent annual results for the year to 31 July 2025 reveal the presure the family firm was under. During the year VG Mathers was owed £384,375 by customers, had £5,275 of stock and a £72,109 net bank overdraft, giving total current assets of £317,541 against debts of £1.02m.
Mathers highlighted the wider challenges facing the UK road freight sector, claiming around 400 road haulage and freight companies had closed during 2025.
Pointing to the impact of rising costs and compliance pressures, Mathers said: "We have faced an unprecedented squeeze from every angle."
He added: "In this industry, we are used to navigating tough times, but recently it has felt like one thing after another.
“We are far from alone in this struggle and our demise is a symptom of a much larger crisis hitting our sector."
Mathers thanked the firm's employees, drivers and customers for their support during the company's long trading history, as well as "our wonderful clients who stood by us”.
“This is a very difficult outcome for us and our team, but the economic reality left us with no other choice,” he said.
Michael Reid of insolvency service MHA said: "VG Mathers is a further example of a business facing significant pressures, unfortunately resulting in job losses.”
He added: "Our priority is to work with stakeholders to manage the process as smoothly as possible.”
