Condor Logistics has partially blamed the government’s decision to scrap the Low Value Consignment Relief (LVCR) from goods imported from the Channel Islands for the failure of the company, which will close down later this year.
The firm was part of Condor Group, which also provides a sea freight service that will still continue to operate, and specialised in delivering between the UK and the Channel Islands.
Despite seeing an increase of 120 consignments per day after it joined Palletways last year, it made significant losses as a result of the removal of the LVCR in April, which allowed goods under £15 from The Channel Islands to be sold to UK customers tax-free.
The firm also suffered from reduced demand for haulage services to and from Jersey and Guernsey as a result of the economic downturn.
Ken Soar, director at Condor Group said: “We have taken the difficult decision to start this consultation with our employees about the closure of Condor Logistics after very careful consideration and only when many other options have been taken into account. We are keenly aware that this will cause anxiety to our colleagues working in the Logistics division in Portsmouth and we are committed to support them at this difficult time.”
Last month the firm invested in seven new Ivecos and employed 10 new staff as a result of its Palletways success.
Its employees are now being offered redundancy packages and support services to help them find new jobs, as well as the opportunity to apply for roles elsewhere in Condor Group.
Palletways are now preparing to re-allocate collections and deliveries previously made by the firm to its other members as of 31 December and are ensuring that customers will still receive the same level of service.
“Condor Logistics have provided excellent service in their time with Palletways and will continue to do so until the end of the year. We would like to thank them for their support and commitment and we wish them every success in the future,” a spokeswoman for Palletways said.
Condor Logistics has an O-licence to run 45 vehicles and 300 trailers and employs around 110 people in the UK, with an additional 20 employees in Guernsey and 50 in Jersey.