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Eazee Euro in at Transworld sites

6th June 1991, Page 6
6th June 1991
Page 6
Page 7
Page 6, 6th June 1991 — Eazee Euro in at Transworld sites
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Which of the following most accurately describes the problem?

• The liquidator of collapsed "Fransworld Distribution has accused the company which is now operating from most of its offices of "trespassing".

Freight forwarder Eazee Euro — which says it has no link with Transworld — took over eight of Transworld's nine depots and is employing about 15 ex-Transworld managers. It is also offering work to former Transworld hauliers.

Melvyn Langley of liquidator Sorsky says his firm now holds the leases to the Transworld sites and warns that Eazee Euro has no right to be renting them independently. "They haven't come up with an offer," says Langley. "As far as we're concerned, they're trespassing."

Eazee Euro's managing director Roy Vernon agrees that there is a "legal matter being dealt with". He says his company has been using the Transworld offices and phone lines for about six weeks, including sites in Warwick, Felixstowe, Dundee, Tilbury and Widnes.

Many former Transworld subcontractors have been sent application forms by Eazee Euro. One, from the Tilbury office, reads: "We have taken over the office of Transworld Distribution and we can see that you made some enquiries about ownerdrivers. Are you still interested? Either way can you let us know. You must have your own trailer so if you can hire one that will be all right. There are no fuel cards."

Eazee Euro is part of a holding company, Reedwad, and is based in Widnes with another depot in Nottingham. It called Transworld managers to a meeting in Nottingham last month and offered them jobs.

The company says it approached the receiver of Transworld and asked to use the offices, but was turned down.

In most cases it approached the owners of the buildings directly. In Felixstowe, for example, it says it is renting its office from Felixstowe Dock and Railway Company.

Offices in Dundee and Huddersfield are owned by local businessmen. One manager told CM: "It's Transworld's desk; Transworld's Biro, but I'm sitting in the landlord's chair." The office manager at Tilbury would not comment on the situation and when CM phoned the Immingham and Warwick offices on Tuesday there was no reply. Bob Bonner, office manager at Middlesborough, said: "Yes, we used to be Transworld."

Peter Meeze-Wallen, manager at Felixstowe, says business has been going well since Eazee Euro took over. "It's taken two or three weeks to gain drivers' confidence," he says, "but we've done 18 jobs so far this week. We are aiming to pay 75-80p a mile for traction with trailer, and we're hitting that at the moment. It isn't enough, but there has been no increase from the people who give the work out since 1985."

He says Eazee Euro is now dealing directly with shippers instead of clearing houses and has cut the waiting time for payment to subcontractors to 45 days, compared with a docks average of 60.

Transworld crashed early last month owing thousands of pounds to almost 1,000 ownerdrivers and other creditors (CM 30 May-5 June). Two weeks ago an angry creditors' meeting heard that payment was likely to be only 20p in the pound, and that would not be sent out for six weeks.

At that meeting Transworld founder Roy Hooson said he had no connection with Eazee Euro "beyond it being a Transworld customer".

Receiver Melvyn Langley said the company had probably been in financial difficulties for more than six months.