Hampshire haulier PL Transport Logistics has been sold to its sole director’s son for £360,000 after it collapsed into administration.
The company had breached the terms of its company voluntary arrangement (CVA) and was facing winding up proceedings when a sale to director Paul Smith’s son Luke – who was a driver for the company - was negotiated.
In a report summarising the haulier’s situation, administrator SFP said the offer had been recommended for acceptance by the valuation agents as being in the interest of creditors.
The deferred purchase by Smith Waste Solutions of the business and assets of PL Transport saved 16 jobs and ensured continuity of the firm’s work.
The administrator added that Smith jnr also intended to operate fewer trucks to significantly reduce its finance and vehicle operating costs; focus on higher margin transport work and change their accountant to ensure he had access to timely and accurate monthly management accounts.
The new director also intended to sever its connection with an associated waste transfer business, which would result in it operating from smaller premises and potentially lower property expenses by £10,000 a month.
PL Transport Logistics was incorporated in 2015 and specialised in the transport of waste food and recyclable materials.
Before it was surrendered, it held an operator licence authorising 18 HGVs and 18 trailers running out of an Alton base.
Covid affected demand for the haulier’s work and at the same time it still had to cover sizeable monthly vehicle finance costs, as well as rent for its premises.
When the lockdowns were lifted, PL Transport was then impacted by rising fuel costs, which added around an extra £70,000 to its monthly fuel bill.
The situation was compounded by its associated company, PL Waste Management, losing its licence with the Environment Agency to operate the waste transfer service at Alton.
It entered into a CVA in October 2023 and paid a total of £40,000 before HM Revenue & Customs informed the CVA supervisor that the company had post CVA liabilities outstanding, which was a breach of the agreed terms.
The report added: “By completing the proposed transaction, the administrators are aiming to mitigate the substantial risks that would be associated with pursuing alternative options.
“An orderly wind-down, for instance, would incur additional insolvency costs and increased creditor claims.
“These circumstances would severely diminish any prospects of recovering funds for creditors because the vehicles would need to be removed from the company’s premises and sold ex-situ.”
Licensing records show that Smith Waste Solutions now holds an operator licence authorising up to 16 trucks and 16 trailers.
