Some 90 jobs will be lost on Friday (July 5) when a Chesterfield delivery firm ceases trading.
Home Delivery Solutions (HDS) has closed after a deal to sell the firm in a pre-pack deal collapsed, TheBusinessDesk.com understands.
It marks the end of a turbulent months for HDS with recriminations over a failed pre-pack deal beginning to surface.
The owner Stephen Taylor issued a letter to staff on Monday (July 1).
It reads: “To all staff.
“As many of you may have heard, HDS will be ending all operations on Friday 5th July.
“We have reached an agreement with Kinetic Logistics, who will be taking over Calladine [HDS’s distribution hub) and continuing their services from this location.
“Initially, they will focus on Lifetime, Costco and home decor, with plans to expand over time.
“Kinetic Services will begin their on 8th July.
“Thank you for all your dedication to HDS over the years. I wish you the best of luck.”
Taylor has now joined Kinetic as general manager, TheBusinessDesk.com understands.
HDS had issued a third notice on intention (NOI) to appoint administrators on Wednesday (July 3), a move which has been described as “breathing space to [Taylor] to strip all value out of HDS” by an anonymous source close to the failed pre-pack. It was the third NOI posted by Begbies Traynor in less than a month.
It is thought that HDS collapsed owing over £1m in tax debts to the Crown.
We’ll have more on the story behind the collapse of HDS next week