Some 82 people lost their jobs when administrators were called in to a £12m Leicestershire haulage firm in March, TheBusinessDesk.com can reveal.
Alvarez & Marsal were appointed to S&J European Haulage, which had its headquarters at Asfordby Business Park in Melton Mowbray, on March 26.
New documents filed by administrators says that 82 of the firm’s 86 staff were immediately made redundant as the company was wound down.
S&J’s trading performance over the last 12-18 months had been hit by rising fuel and labour costs – as well as soaring inflation – which affected the company’s profit margin and, in turn, impacted its working capital facility. The company also lost a major customer last year, which meant a loss of £1m to its annual turnover figure. S&J was unable to replace the lost work, according to administrators.
S&J was primarily funded by a CBILS loan, an overdraft provided by Lloyds Bank and an invoice discounting facility through Lloyds Bank Commercial
The administrators say some £1.6m was outstanding under these arrangements when they were appointed and that it is “uncertain” whether it will be paid back.
In total, S&J European Haulage owed over £5m when it collapsed. Unsecured creditors are unlikely to be paid what is owed to them.