South Wales haulier Ellis Morgan & Son has gone into liquidation following the collapse of its key client Western Corrugated, leaving the firm £250,000 out of pocket.
Peter Dewey of Begbies Traynor was appointed as liquidator of the firm on 28 January, making all 28 staff redundant. The company's statement of affairs shows it has a total deficiency of £1.07m.
As reported by RoadTransport.com, the Rogerstone, Gwent-based firm ceased trading when packaging company Western Corrugated went into administration.
According to Begbies Traynor, the closure of Western cost Ellis Morgan £250,000. A statement says: "Ellis Morgan signed a contract with Western in April 2009 that would generate additional turnover of about £1m a year. Ten drivers from Western transferred to Ellis and the company hired 10 vehicles to enable it to make up to 19 deliveries a day."
Work from Western had thrown the company a lifeline back in 2008 when it lost three major customers, adds the liquidator.
The family-run firm, which began trading in 1820, owes non-preferential creditors £1.05m, with available assets of just £47,678.
Non-preferential creditors include Gwent haulier JP Bull Transport and Padiham, Lancs operator Fagan & Whalley, which were also working for Western.
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