Fri, 19 Jan 2024 | ADMINISTRATION
Gwynedd Shipping, a long-standing haulage firm based in Anglesey, has fallen into administration and ceased trading. The collapse of the company, which had been trading for close to 40 years, comes amid mounting financial distress and insolvency levels in the UK haulage sector. In addition to its Anglesey base, the company also had additional sites in Wales, England and Ireland.
James Saunders and Michael Lennon of Kroll were appointed as joint administrators of Gwynedd Shipping Limited and Gwynedd Transport Limited. Upon their appointment, the businesses ceased trading, with the majority of its workforce of more than 140 staff made redundant.
Despite the collapse of the companies, the joint administrators say that they are hopeful of securing buyers for certain assets, with several parties reported to be interested. According to separate reports, some drivers have already been offered work with other local and regional haulage companies.
In Gwynedd Shipping’s accounts for the year ending May 31 2022, its turnover increased to around £18.5 million, from £15.5 million a year earlier, while operating profit more than doubled from around £400,000 to just under £1.1 million. The company’s total equity also increased from £25,246 in 2021 to close to £910,000.
However, despite this positive growth, administrators said that the companies had struggled with legacy liabilities and with wider headwinds impacting the UK haulage industry, including several loss-making contracts, ultimately leading to their collapse.
A spokesperson for Kroll said: “The businesses, which originally began trading almost 40 years ago, have faced financial challenges common in the transport and distribution sector including certain loss-making contracts.”
"Unfortunately, due to the extent of legacy liabilities, the businesses were unable to secure their future on a going concern basis and as such the majority of employees were made redundant with immediate effect as the businesses ceased to trade upon appointment.”
The spokesperson added: “The Joint Administrators are in discussions with several parties interested in acquiring certain assets, contracts and routes and it is hoped that this will provide opportunities for a number of former employees.”
Find out more about the factors driving high insolvency rates among UK haulage firms, as well as M&A trends in the wider logistics sector
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