Tue, 20 Aug 2024 | BUSINESS SALE
A E Chilled Limited, a Dover-based provider of temperature controlled freight transport, has been acquired in a pre-pack administration deal. The company has been acquired by Big Transport Kent in a deal that secures all 62 jobs at the firm.
The company operated 50 HGVs and 60 trailers from its operating centre in Dover, but had recently encountered “significant financial challenges”. Despite showing continued growth until February 2024, the firm was subsequently hit when its largest customer, salad producer UK Salads, fell into administration in March.
UK Salads fell into administration despite reportedly forecasting significant growth during 2024. These forecasts had led to A E Chilled increasing its fleet to accommodate this growth, with UK Salads’ subsequent collapse leaving it with substantial bad debt.
The loss of the company’s contract with UK Salads severely impacted its liquidity and future revenues, with directors forced to inject £378,000 into the business in an effort to ensure its survival.
However, these efforts were hampered further in June when the company lost “a significant EU contract.” In a statement, directors said: “AE Chilled was unable to compete with European rates, leaving the business with a fleet it was unable to reduce.”
A E Chilled approached Begbies Traynor and, following an assessment, a pre-pack sale was determined to be the most viable solution for the business. Big Transport Kent, which shares two of the same directors with A E Chilled, was selected as the successful bidder following a marketing campaign with a pre-pack sale completed upon the appointment of Begbies Traynors' Jeremy Karr and Simon Killick as joint administrators.
The statement from directors said: “AE Chilled’s directors delivered substantial growth since its inception in 2020 and, but for prevailing circumstances, is expected to build on that going forward.”
The directors continued that, with the ongoing support of Big Transport Kent founder Peter Waddell, the buyer “will work with the existing management team to significantly improve upon the business’ existing coverage, diversify the services it provides and continue to deliver an excellent service for its existing valued customers.”
In the company’s accounts for the year ending September 30 2022, its fixed assets were valued at nearly £2.3 million and current assets at £1.4 million. However, debts meant that its net assets were valued at just over £332,029.
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