Two haulage and storage businesses in administration

Two connected Cheshire haulage and storage businesses, DJM Logistics (UK) Ltd and DJM Transport Ltd, have both entered into administration, having buckled under the strain of difficult trading conditions.

Grant Thornton has been brought in to manage the administration process for the companies.

Joint administrator Les Ross, says of the situation: "The reasons for the demise are no different to some of the others in the sector. It is a competitive marketplace, with overcapacity. This is another example of too many companies chasing too little work."

Mr Ross explained that the transport side of the business had been hit the hardest by cash-flow problems, and that while the warehousing division was the stronger of the two, it "was not full enough or long enough at the right rate."

Last year, a creditor of DKM Logistics (UK) Ltd lodged a winding-up petition against the company, although this was subsequently rescinded in November.

Following the appointment of administrators, the finance director for both firms, Mike Hickman, immediately registered another company in Wigan, RSJ Logistics Ltd, on 21st May.

About 30 people have lost their jobs as a result of the administration. The companies are still operating in the short term until the result of the process becomes apparent.

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