Six-figure price tag for East Yorkshire operator sold in pre-pack deal

BI Halder & Son which had been operating since 1969, was facing a significant debt with HMRC for VAT payments, which had accumulated amid wage increases, the Covid 19 pandemic, soaring fuel prices and rising vehicle hire costs.

Administrator Leonard Curtis said the arrears were in the region of £585,000 and so the East Yorkshire haulage company dealt with it by taking out a loan for £300,000 and arranging a time to pay (TTP) agreement with HMRC for the balance of £285,000.

It made nine monthly payments of £12,000 while at the same time paying ongoing liabilities for both VAT and PAYE, but by January 2025 it no longer had sufficient funds to pay the December quarter’s VAT.

BI Halder’s problems were compounded after the TTP arrangement was brought to the attention of its invoice finance company’s attention and it reduced the advance rate on financed invoices from 85% to 70%.

Leonard Curtis said: “In addition, the invoice finance funder insisted on a review of the position to be carried out by a national restructuring firm to determine what should be done, the costs of which were to be borne by the company.

“This resulted in the relationship between the funder and the directors breaking down as the impact on cashflow would be worsened.”

The directors then met with Leonard Curtis and after exploring all available options, a proposed sale of the business was chosen.

The total sale value of £346,548 included goodwill and intellectual property of £96,548; contracts and work in progress of £36,000; £100,000 for motor vehicles and £57,000 for trailers.

Halder Transport and Storage, which shares the same directors Louise and Paul Halder, paid £50,000 on completion of the deal, followed by £17,327 and then monthly payments of around £46,500 until April 2026.

The administrator added: “The sale included the transfer of 42 of the company’s employees under TUPE regulations.”