Problems at JDR revealed

The managing director of collapsed transport company JDR Distribution has admitted to trading while insolvent and concealing the true position of the management accounts. In an email leaked to MT, MD Jarrod Baughan reveals to one of the firm's major investment partners that he had been producing a summary of the management accounts for board meetings, thereby hiding mounting losses at the firm from investors.

He hoped this would buy him time in order to secure highly profitable work and "very quickly reverse" the company's difficult position. According to the email, Baughan wanted to lessen JDR's reliance on its core customer, DSV. Baughan says that throughout this time, true management accounts were produced that accurately reflected the trading position, and he stresses "no money was embezzled or stolen".

JDR collapsed into administration in April (MT 1 May) - ten months after it rebranded as 24-hour delivery service moved4u. The firm employed 35 people and had a turnover of £5.2m, but ended up with just over 100 creditors and debts in excess of £2m. JDR's administrators - Cooper Parry insolvency practitioners - say a creditors' meeting is due in the next three to four weeks.

JDR began in 1980 as a traditional haulage company. The moved4u service offered an ad-hoc delivery service from the North West to the South East of England.  Cooper Parry was unavailable for comment as MT went to press on whether or not JDR had been trading while insolvent.