A Company Voluntary Arrangement (CVA) at a North East-based haulier led to customers switching to rival operators, eventually resulting in the firm going into administration.
The plight of Gazelle Transport Services is outlined in the latest progress report from administrator Baker Tilly Business Services, which was appointed to the firm just one month after a CVA was approved.
Gazelle, which operated 20 vehicles and 15 trailers out of a site in Gateshead, had made a pre-tax loss of more than £200,000 when the firm’s creditors approved a CVA in July 2012.
However, joint administrator Steven Ross said: “Unfortunately, as a result of the CVA, a number of key customers chose to switch to other hauliers.”
Ross said no purchaser for the company could be found and so the company has now entered liquidation.
But he indicated that trade creditors could be paid: “The statement of affairs estimates that the claims of the non-preferential, unsecured creditors total £878,326 and the deficiency regarding those creditors is £796,542.”
He added: “It is anticipated that there will be a distribution to non-preferential, unsecured creditors, but the joint administrators consider it more appropriate to deal with those through a liquidation process.”
