Poor cash flow pushes PS Corney into liquidation
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By Joanna Bourke
LANCASTER OPERATOR PS Corney Haulage has entered liquidation with an £82,780 deficiency after a two-year cash-flow struggle.
The Morecambe haulier owed preferential creditors £2,000 and unsecured claimants £78,959 when it appointed James Kaye and Nick Morgan of Cooper Williamson as joint company liquidators on 12 May.
However, the bulk of Corney’s fleet was leased and it rented premises on other company yards, meaning it had little assets available. The company had an O-licence for 17 vehicles. At the time of bankruptcy, only five employees remained at the business, all of whom were made redundant.
A Cooper Williamson spokesman says: “In 2009, the company directors noticed that customer demand was diminishing, and as diesel prices went through the roof, PS Corney struggled to keep up with debts.
“The company relied mainly on one contract, and this was recently reduced by 5%, which really pushed it over the edge.” He adds that he understands director Philip Corney is working as an owner-driver, but the new company is unlikely to be a limited one.