G R Formby went bankrupt because of high fuel bills

G R Formby Heavy Transport is the latest haulier to buckle under bad debts and high diesel bills.

The Ormskirk, Lancashire-based heavy haulier owed creditors approximately £136,000 when it appointed James Kaye and Nick Morgan of Cooper Williamson as joint liquidators of the business on 22 February.

Well known for its airbrushed liveries, the firm, which had an O-licence for six vehicles and 12 trailers, leaves a deficiency of £127,815. All eight staff were made redundant.

"In a common scenario these days, G R Formby lost work in the recession and struggled with the rising price of diesel. The company could not cope with the fuel costs and this created a cash flow problem, which meant it could not pay its debts when they were due," a spokesman for Copper Williamson tells Roadtransport.com.

He adds that the company was enduring creditor pressure, mainly from HM Revenue & Customs (HMRC), which was owed around £100,000.

G R Formby's bankruptcy comes some five months after Doncaster heavy haulier DK Teasdale & Son entered liquidation.