Scots haulier fails after establishes a new company
Page 6
If you've noticed an error in this article please click here to report it so we can fix it.
• by Sally Nash and Miles Brignall
Subcontractors have been left reelIng after Scottish transport firm John Adams & Sons went into receivershp On 2 May—just weeks after the company's managing director set up a new haulage venture called Eye plc.
Last week the Bank of Scotland's patience ran out and Ernst & Young was appointed to handle Adam's receivership. The company's head office in Linlithgow, Scotland and depots in London, Preston and Birmingham have all been closed and 55 of Adams' BO staff have been made redundant. The firm had carried out work for a number of big-name firms.
A spokesman for the receivers says it is too early to say what the firm's total debts will be and how much, if anything, creditors will be paid. He reports that its directors have told the rec-eivers that Adams had been losing money for some time.
'All Adams' 25 tractive units and 50 trailers were operated on contract hire and are in the process of going back to their suppliers," he adds. "The company's main value is in its order book and in the Linlithgow site— we are still assessing the position."
Commercial Motor has been inundated with calls from angry owner-drivers and transport firms who claim they are owed sums up to 120,000.
They point out that that they are still waiting for money from John Adams while the company's managing director, Jim Hay, has set up a new company, offering return loads nationwide.
In March Hay wrote to contractors about splitting the company into two. He said that John Adams would carry on with fleet operations and expand, while a new company called Eye plc would focus on logistics management. Hay promised that Eye would change an industry "notorious for slow payment, a lack of respect and trust". The new company, which asked contractors to sign a new agreement, promises 14-day payment terms.
One haulier, who says he is owed .27,000 for work for John Adams dating back to August last year, says: "This is sheer cheek, asking us to sign up to a new company. I don't know about slow payment—there was no payment at all."
Arthur Hewetson, managing director of Penrth-based Barnett & Graham, claims he is owed .220,000 for work dating back to August last year. "We had beer struggling to get payment for some time but were constantly
fobbed off with excuses," he explains.
Commercial Motor was unable to speak to John Adams & Sons, despite making repeated attempts and leaving messages with the company's secretary.