Interpath Advisory took control of the company’s affairs on Tuesday (18 June) and 100 of its 104 employees were made redundant.
In a statement, the joint administrators said: “Due to the economic challenges and competition within the logistics industry, the director of Linkline had recently launched an accelerated M&A process to find a buyer for the business and explore restructuring options.
“However, without any viable offers and unable to meet its financial obligations, Linkline couldn’t continue trading and joint administrators were ultimately appointed.
“Regrettably, 100 staff were made redundant on appointment. The joint administrators have retained the remaining staff to support them in winding up the business’ operations and will move towards launching an asset sale.”
Administrator Rick Harrison said: “The UK logistics sector has been reeling from multiple economic factors that have made trading conditions challenging for many operators. In addition, Linkline struggled in the face of intense market competition and without significant additional investment, it was unable to continue trading.
“Our team is on site to provide support for employees in making the appropriate claims with the Redundancy Payments Service and is also engaging with customers.”
Motor Transport reported that a new licence in the name of Linkline Logistics was applied for earlier this month, requesting 50 trucks and 75 trailers and running out of the same two operating centres as Linkline Transport.
Linkline Logistics was incorporated at Companies House on 26 May and it also shares the same director, James Bowes.
Nualaw solicitor Nuala Toner said many of the employees made redundant have contacted her firm to find out if the haulier breached their employment rights.
“It appears, on our instructions so far, that Linkline may have breached the employment rights of those dismissed in that there should have been a consultation period of at least 30 days,” Toner said.