Muckle help rescue family run haulage business
Muckle LLP were delighted to advise Greg Whitehead as administrator on this transaction which saw joint venture partners come together to rescue a family business and save jobs.
The 30-year-old family-run haulage and pallet company, Border Traffic Services Limited, which operates from two sites in the North East, employs 32 people.
Greg Whitehead, a restructuring specialist with Northpoint Insolvency Practitioners, said, the business had been "trading through difficult times" for a couple of years but the recent loss of a significant customer resulted in losses being made and the operation was deemed "no longer viable in its current form".
"I was introduced to the company's management when a marketing effort to sell it had attracted interest but no deal could take place due to its insolvency, making a share sale impossible," he added.
"However, through an administration process part of the business and assets, essentially the haulage operation, has been sold to trade buyers saving 18 jobs and there is a good prospect that trade creditors will receive some money back."
Joint venture buyers
A joint venture of Kelso’s Olivers Transport Limited and Cockburnspath’s Drysdale Freight Limited bought the haulage part of the business under the name Border Traffic Transport Limited.
Kenneth Oliver, representing the purchasers, said: "We have known of Border Traffic for many years and it has been a respected operator working throughout the UK from its Northumberland base.
"It was sad that the company itself could not be saved but that was not feasible in the circumstances. However, the transaction we have completed with Mr Whitehead has been a good outcome given the situation."
For more information, help or advise on restructuring please contact Kelly Jordan on 0191 211 7899.