Trade companies owed money by a collapsed freight forwarder in Bolton could be lucky to get back just 2p in the pound, according to latest estimates by its administrator.
Tailormade Logistics closed down in February after three years of trading – although it had never made a profit, according to BDO LLP.
The company was a UK subsidiary of the Tailormade Logistics Group, which is a haulage and logistics provider with hubs in Belgium, France, Italy and other European countries.
BDO said it sourced e-commerce customers, obtained quotes from logistics providers for distribution, stored packages and used 3PLs to fulfil orders.
Company records showed that it had an insolvent balance sheet and creditor arrears of around £2.3m, although so far BDO has received claims of £714,000.
“The majority of the arrears relate to logistics suppliers and c.£350,000 of arrears relate to intercompany balances due to the group,” the administrator said.
“Based on current information, the estimated distribution to unsecured creditors is 2-6p in the pound.
“This is subject to change as it is entirely dependent upon the level of future book debt realisations and future costs.”
One creditor, London-based Dandy Booksellers, said more than £20,000 worth of its books were damaged while they were being stored in Tailormade’s Bolton warehouse when there was a sprinkler malfunction.
Director Donna Ravenhill told Motor Transport this week she was “not hopeful at all” that it would be reimbursed.
