Mon, 09 Jan 2023 | ADMINISTRATION
Administrators will seek to sell the assets of East Yorkshire-based logistics firm Sam Carmichael Logistics Ltd, following the company's collapse. The firm was headquartered in North Ferriby, East Yorkshire and provided warehouse and distribution services throughout the UK.
The company operated out of North Ferriby’s Melton Enterprise Park and was incorporated in April 2021. It held a licence under the name Carmichael International, which initially granted it authorisation to operate six lorries and nine trailers, before it applied to increase its authorisation in January 2022.
The company was licenced to operate 21 trailers and 18 HGVs but, in November 2022, its licence was revoked by the traffic commissioner. James Clark and Howard Smith from Interpath Advisory were as joint administrators to the business on January 3 2023.
Speaking to motortransport.co.uk, the joint administrators said that the firm had run into cashflow problems, following “temporary disruption at one its principal customers”. Interpath Advisory added: “After assessing their options, the directors took the difficult decision to seek the appointment of administrators.”
Joint administrator and Interpath Advisory MD James Clark commented: “We will now commence an orderly wind down of the business, while seeking to realise the company’s assets.”
The majority of Sam Carmichael Logistics’ 21 employees were made redundant prior to the appointment of the joint administrators, with three more employees subsequently losing their jobs upon their appointment.
The collapse of the company comes at a time of plummeting confidence among businesses in the UK logistics sector. The latest Barclays-BDO Logistics Confidence Index shows a confidence score of 50.4 among business owners in the industry, down 12 points over the last year, as operators grapple with inflation, rising energy prices, supply chain disruption, HGV driver shortages and the increasing cost of labour.
However, despite the headwinds affecting the sector, M&A activity is on the rise, with almost 45 per cent of respondents to the Barclays-BDO report saying they were planning to make an acquisition over the coming year.
As pressures increase on logistics firms, M&A can enable businesses to unlock growth by expanding their service offering, scaling up operations, digitising and increasing their margins. Rising levels of distress and an influx of private equity investment into the sector are likely to further drive M&A activity.
Read more about increasing M&A in the UK logistics sector.
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