Derbyshire freight firm enters administration after failed sale process
Thu, 11 Jul 2024 | ADMINISTRATION
A haulier based in Chesterfield has fallen into administration after an accelerated sale process failed to secure a buyer for the company. Home Delivery Solutions held operator licenses in the North East and North West, providing two-man delivery services across the UK.
The company was incorporated in 2009 and operated 16 HGVs from two Chesterfield operating centres, as well as a further 20 lorries from a depot in Sutton-in-Ashfield.
Prior to entering administration, the company had engaged Begbies Traynor to provide advice on improving cash flow and its legacy debts. An accelerated sale process was considered to provide the best opportunity to save the company and it filed several notices of intention (NOI) to appoint administrators in order to allow time for a sale.
NOIs were filed on June 7, June 20 and July 3 while the process was underway. However, despite Begbies Traynor receiving offers from “multiple parties” interested in acquiring the business and a preferred bidder being selected, the sale was ultimately unsuccessful.
Mark Malone and Gareth Prince of Begbies Traynor were appointed as joint administrators on July 5 and the company ceased trading on the same day.
In a statement, Begbies Traynor said: “Discussions with key customers regarding the provision of future services formed part of the due diligence process.”
“However, as a result of growing uncertainties over the company’s ability to provide its services, some of its biggest customers sought alternative suppliers, leading to the withdrawal of the preferred bidder’s interest.”
“Other bidders who had shown interest in Home Delivery Solutions Limited were contacted, but it became clear that the only viable course of action was the managed wind down of the company’s operations.”
The statement added that the joint administrators would now work to secure and realise the company’s remaining assets. In accounts for the year to December 31 2022, the firm’s fixed assets were valued at close to £916,000 and current assets at £1.8 million. However, significant debts meant that its net liabilities totalled just under £170,000 at the time.
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