Tue, 01 Feb 2011 | ADMINISTRATION
West Midlands-based haulage company FG Foster Haulage has fallen into administration following the rise in fuel prices leading to 'major cashflow problems.'
The business, which was headquartered in Walsall, ceased trading at the end of last year following months of mounting debts to HM Revenue & Customs, rising competition within the marketplace making it increasingly hard to find work, and the recent rise in fuel prices. All 15 members of staff were made redundant in December 2010.
SFP's Daniel and Simon Plant have been called in as administrators and are currently hunting for a buyer for the firm's assets in a bid to regain the debt owed to numerous creditors.
Prior to its administration, the annual turnover of FG Foster – which specialised in transporting third-party freight around the UK and Europe - was in the region of £800,000. It also had an O-licence for 21 trailers and 10 vehicles.
Group partner at SFP, Simon Plant, says, “Profit margins are constantly squeezed for transport companies, with increased competition from Europe and high running costs.
"So it seems inevitable that increases on fuel charges will have a major effect on these businesses,” he added.
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