Two pallet hauliers struggle: one CVA and one administration
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By Chris Druce
TWO MORE hauliers have come under pressure in the tough operating environment, with Pallet Distribution Services ceasing to trade and Palletline Logistics (Midlands) seeking protection from its creditors (CM 3 May).
Essex-based haulier Pallet Distribution Services has collapsed into administration, with fierce competition and soaring fuel prices cited as the main contributory factors.
Simon and Daniel Plant from insolvency firm SFP were appointed joint administrators on 24 April at the business, which has now ceased trading. The firm has no assets for sale.
Pallet Distribution Services offered general haulage services in the South East, as well as warehousing and pallet distribution. Headed by director David George Salter, the firm was licensed to run 12 vehicles and five trailers from its Brentford, Middlesex, operating centre. It had an approximate annual turnover of £1.6m and employed 20 people.
As reported last week, Palletline Plc network member Palletline Logistics (Midlands) applied for a company voluntary arrangement (CVA) on 26 April to restructure its debts and buy some breathing space from creditors.
The Birmingham haulier, which is licensed to run 10 vehicles and 10 trailers, is led by MD and Palletline Plc network co-founder Bob Russett. Kevin Buchanan, MD of Palletline Plc, says: “Rising fuel costs and a tough trading environment has forced one of our member companies to apply to enter a CVA.
“The arrangement will allow Palletline Logistics to continue operating, while meeting its obligations to customers and creditors.” Palletline Plc was established as the first of the pallet networks in 1992 by Russett, Colin Sturgess, John Watt and Ken Hackling.