Motor Transport have reported that David Price Food Services, the Tyne and Wear based Haulier business has gone into administration just over a year after entering a Company Voluntary Arrangement (CVA). The chilled haulage division has closed but the cold storage section has been sold to the Ice Company Distribution business and 29 jobs have been saved.
Its haulage operations were based in Bristol, Bury St Edmunds, Glasgow, Gillingham, Wrexham and South Kirby in Yorkshire.
KPMG’s restructuring practice proposed the CVA but have now been appointed as joint administrators. They stated the collapse of the operator was due to a period of poor trading and an increased cost base, primarily due to rising fuel and utilities costs. KPMG's deal was for the creditors to get back 38p in the £1 and it would appear that the recent poor trading made this business unviable. KPMG have lots of experience ( like us of course) in CVAs and they don't always work as no one can predict the future. The business was already stressed but it looks like they have tried to keep trading rather than throwing in the towel right away.
David Price Foods had a turnover of £13.9m in 2012 with a pre-tax loss of £979,804.