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FRP Advisory secures the sale of Clearway Distribution Limited
9 January 2012
55 jobs saved at Nottingham based road haulage business
FRP Advisory, the specialist restructuring, recovery and insolvency firm, has secured the sale of Clearway Distribution Limited saving the jobs of 55 staff, after the business went into administration on 5th January 2012. Chris Stirland and Nathan Jones, partners at FRP Advisory in Leicester, were appointed Joint Administrators.
Clearway Distribution Limited began to experience trading difficulties and bad debts over a period of years and entered into a Corporate Voluntary Arrangement, which subsequently failed in November 2011.
Commenting Chris Stirland said: "Despite having a strong client base and good pipeline of work, Clearway Distribution, like many haulage companies, found its profit margins being squeezed by high fuel costs, the loss of some key customers meant that the site it occupied was far too large and expensive to enable a successful trading business with the reduced level of turnover to operate from that location."
"This led to an unmanageable cash flow situation, which resulted in the demise of the business. In order to protect the underlying value of Clearway Distribution, we determined that a managed administration process would safeguard goodwill while we sought to identify a suitable buyer for the Company."
"After marketing the business we received a number of offers, the strongest of which was from the Company's existing management. As a part of the deal, all 55 employees have transferred under TUPE to the new company, which will trade as B2B Logistics Ltd."
"Essential financial support for the deal was provided by Bibby Financial Services with legal advice from Shoosmiths, we are very grateful for all the assistance given over the past 2 weeks."
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