Palletline member MR Clark & Sons is expected to appoint a liquidator by the end of the week.
The board of directors at the Kirkgunzeon, Dumfries-based firm has called a creditors' meeting for Friday 24 July at accountancy firm Armstrong Watson's offices in Dumfries.
A spokeswoman for Armstrong Watson tells Motor Transport that they have been acting in an advisory capacity for MR Clark, but anticipate being appointed as liquidators following the creditors' meeting.
Meanwhile, fellow Palletline member Wishart International has taken over MR Clark's Palletline postcodes.
Mark Pulford, Palletline operations director, says: "We monitor our members very closely and are helping MR Clark through a difficult time. Wishart is covering MR Clark's postcodes on a caretaker basis initially, with the aim of taking them over permanently."
Kevin Huskie, joint MD at Wishart, says: "We already cover Fife, Dundee and Perth, but are now taking on CA, DG and TD postcodes."
He adds that Wishart has been assisting MR Clark for the past few months. "The MD, Ian Clark, had been looking to get out of the industry since the start of the year and we were considering buying the business, but then we agreed to manage it for him on a consultancy type basis."
Clark tells MT he "would rather not comment".
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