Property and trucks belonging to insolvent Whittle Movers Ltd are expected to bring in cash to help pay unsecured creditors that have submitted claims totalling £1.5m.
The Preston, Lancashire-based warehousing and removals specialist was a hit by a series of financial blows in the lead up to its parent company Whittle Movers Group, which is not in administration, appointing Paul Flint and Brian Green of KPMG as joint administrators of the subsidiary on 8 March.
Earlier in 2011, Whittle Movers Ltd had its subcontracting deal with the Ministry of Defence reduced, and eventually frozen, forcing it to reduce headcount to 33 from 65. In addition its office and commercial division was loss-making, while in its leisure arm its client Empire Cinemas refused to do business with the firm if it decided to trade through administration.
The 20-year-old business had enough assets to pay all £82,000 owed to preferential creditors, however there was not enough to cover the £1.5m owed to unsecured creditors. The firm left a deficiency of £190,425.78.
Ten vehicles, 58 trailers and 43 artics were put up for sale, and £397,500 was made from those that sold, according to a statement of affairs filed at Companies House this week by KPMG.
Two of the firm's four units at Bamber Bridge are freehold, and there have been expressions of interest in purchasing them.
KPMG says: "Based on current estimates, it is likely that a dividend may be available for unsecured creditors. However, it is not possible at this time to confirm the timing and quantity of any potential dividend. An update on this position will be provided in the next progress report to creditors."
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