As Motor Transport went to press, the director of Darlington's North-East Logistics said he expected the business to go into liquidation this week for "a multitude of reasons".
Creditors of the UK Pallets member, which has ceased trading, were invited to a meeting that was due to take place on 28 January to decide its future. Unless an investor is found it is likely that Newcastle-based chartered accountant Tait Walker will handle its liquidation.
Company director David Instone was unwilling to discuss why the business had hit the buffers, resulting in 18 redundancies including co-director Peter McLean. But he adds: "It's for a multitude of reasons that I don't want to go in to. The business won't continue to trade, which is what I had wanted. Not unless I get a big investor."
Instone confirms he is contracted to work for County Durham-based Simpson Bros, "but not on a permanent basis".
UK Pallets commercial director Graeme Wilson says it has secured a new member to take over the postcodes that North-East Logistics handled. "Because of timings we are still negotiating terms and conditions," he says. "We put our disaster recovery plans in place and they have worked. Service wasn't disrupted."
Wilson says UK Pallets is also a creditor: "There is a sum of money outstanding."
Chris Lott, administrator at Tait Walker, says the business will remain the responsibility of the two directors until the creditors' meeting.
Lott adds: "At this moment there's no alternative than to put the business into liquidation."
