KPMG appointed administrators of Corporate Road Solutions 24:7 Limited
Blair Nimmo and Alistair McAlinden of KPMG LLP have been appointed as joint administrators of Corporate Road Solutions 24:7 Limited.
Based in leasehold premises at Redmill Industrial Estate in Bathgate, the company was incorporated in October 2005 operating as a road haulage contractor and freight forwarder.
Latterly employing 70 staff together with a number of agency and self-employed drivers, the company specialised in the transport of goods for large supermarkets together with smaller Scottish businesses, primarily across the UK.
In recent years the company has suffered from increasingly challenging market conditions and cost pressures. Over 2019 the resulting financial difficulties were exacerbated by the departure of key freight forwarding staff to a competitor together with the loss of a major customer.
The director sought to address financial issues by cutting costs and securing additional working capital. Discussions were also held with certain third parties with a view to securing investment or sale of the company.
Despite these extensive actions, financial pressures continued to mount and with no offer for the company forthcoming the director concluded that there was no option other than to place the company into administration.
The company ceased to trade immediately following the administration appointment.
Following the appointment, 66 employees have been made redundant. Four staff members have been retained to assist the joint administrators.
Blair Nimmo, joint administrator and KPMG’s UK head of restructuring, said: “Haulage remains a challenging sector and, despite the tireless efforts of the director, unfortunately, Corporate Road Solutions 24:7 Limited has now entered into Administration. It has not proved possible to continue trading in light of significant liabilities and cashflow difficulties. This has, in turn, resulted in the redundancies which have been announced and the closure of operations.
“Our attention is focussed on supporting the impacted customers and employees. We will be working with all affected employees and the relevant government agencies, including the PACE team at Skills Development Scotland, to ensure a full range of support is available. Impacted customers and parties with an interest in the business and/or assets should contact the Joint Administrators as soon as possible.”