Wed, 22 Sep 2021 | ADMINISTRATION
EVCL Chill, a distributor of chilled foods to UK supermarkets including Sainsbury’s and Asda, is poised to enter insolvency. Early reports indicate that the business is close to succumbing to a range of factors, including a shortage of HGV drivers and supply chain challenges and costs.
The business, previously called NFT Distribution, has been a subsidiary of logistics firm EV Cargo since being acquired out of administration in early 2020. That deal was brokered by administrators PwC, with the restructuring firm reportedly also being lined up to handle this process.
EVCL Chill, based in Alfreton, Derbyshire, is said to be in talks with its major customers over contingency plans to help secure supply continuity. The business is described as being a key supplier in the ambient and chilled foods logistics market.
The division’s last available financial reports at Companies House cover the year ending September 29 2018, at which time the business was still trading as NFT Distribution prior to its administration and acquisition by EV Cargo.
For that year, the business reported post-tax losses of £29.1 million on revenues of close to £334 million. At the time, the company’s total assets were valued at £99.7 million, but its total liabilities of £164.4 million left it with a total deficit of £64.6 million
As well as causing growing supply issues for the UK’s supermarkets and shoppers, driver shortages and rising supply chain costs are also impacting logistics firms. Earlier this month, another Derbyshire-based firm, haulage company Sprintdeliver, entered administration due to the impact of driver shortages and the pandemic.
Read more about M&A in the UK logistics sector.
View the latest distressed UK businesses here.
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