A West Sussex waste management firm that was served with a winding up petition by HM Revenue and Customs was able to transfer all 70 employees to another company before it entered liquidation.
South Coast Skips had been trading for around 20 years and held a licence for 25 skip trucks, tippers and trailers, running out of an operating centre on the Rudford industrial estate in Arundel.
According to business advisory firm FRP, the company faced significant financial challenges associated with the Covid-19 pandemic, increasing costs and difficult trading conditions.
It meant South Coast Skips accrued liabilities to creditors and was no longer able to meet its financial obligations.
FRP said prior to entering liquidation on 3 March, HMRC presented the company with a winding up petition, but then a transfer was also secured for all staff to move over to Hoare Construction Group (HCG), which owns the Arundel site.
FRP added that it is now in the process of selling the vehicles, plant and equipment to HCG, which will continue to operate and service customer requirements.
Alexander Kinninmonth, director at FRP and joint liquidator, said: “With increasingly difficult trading conditions and the rising cost of raw materials, many sectors are facing significant operational challenges.
“South Coast Skips operated for almost 20 years but due to external pressures, was no longer able to trade.
“Owners of the site, Hoare Construction Group, will continue to work with existing customers while all 70 employees have also transferred across to the business.”