Bomfords Haulage’s goodwill and some of its assets were sold in a pre-pack deal to a subsidiary firm in the Bomfords Group, which helped rescue some of its business and staff, according to the administrator.
The Norfolk haulier entered administration last month after battling the fuel crisis, drivers’ wages, repayment of Covid loans and a general decline of the haulage sector following a post-Brexit boom.
Kroll Advisory said the company had become insolvent on a cash flow basis and so it advised a pre-packaged sale would offer the best prospect of maximising recoveries from its book debts.
In a report to creditors, Kroll said: “A full orderly wind-down or CVL would have resulted in all employees in the group being made redundant as a result of the group winding down, thus increasing creditor claims.”
Star Transport and Warehousing, a company within the Bomfords Group, bought six vehicles, contracts, goodwill and other business information for £71,670, in a deal that went through on 22 December, “due to the haulage industry largely shutting down between Christmas and New Year, allowing customers (where necessary) to find alternative supply from the New Year,” said Kroll.
The report added: “The pre-packaged administration sale allows for the continuity of certain of [Bomfords Haulage’s] trade, thus protecting book debts and resulting in a higher return to creditors.
“In addition, the transaction allowed for 11 staff to transfer to the purchaser under TUPE.”
