A haulage company based in Felixstowe has ceased trading and gone into administration after a long period of pre-tax losses. Staff were told and sent home on Monday.
Regrettably, the majority of 224 employees have been made redundant. Accounting firm, Ensors, were appointed joint administrators and have given the following statement:
“Management had attempted to put in place a recovery plan and had recently taken cost cutting measures in an effort to turn the business around.”
“But it became apparent that its immediate short-term funding requirement could not be met and the director took the decision to place the company into administration.”
Ongoing problems, including a drop in freight rates and falling oil prices in the transport industry, have resulted in a number of firms struggling with cash flow.
Founded in 1987, Deben Transports has depots across England, including Manchester, Leeds and Tilbury and is one of the largest container haulage companies in the UK with a fleet of 225 tractors and 500 trailers.
If you are an employee of the business, please listen to the video below as it will tell you your rights as an employee of an insolvent business. There is a link at the end of the video to the Government website which expands further on what you need to know.
Take a look below at our new infographic on creditors' rights (which includes suppliers, contractors and employees). The infographic illustrates who gets paid and in what order: