Ramage Distribution's demise can be traced back as far as 2004, according to information seen by MT. In a three-page letter leaked to MT, the Lanarkshire-based company divulges to staff the reasons that led to the appointment of KPMG as administrators earlier this month (MT 17 April). According to the letter, prior to Ramage buying UFD in July 2007, the firm suffered 33 consecutive loss-making months, largely as a result of low quality/poor paying work and the loss of huge tracts of business.
Although the firm returned to profit in April 2007, the situation was very fragile, with "little scope for absorbing/surviving material unexpected events". Around this time, Kraft Foods, Ramage's biggest client, indicated it wasn't prepared to give Ramage a contract beyond mid-2008, while Ramage also lost the majority of its work with Bosch. Chartered accountants Scott Moncrieff were instructed to seek a "bigger player" to take the group on, but none was forthcoming.
Shortly after the UFD purchase went through, Petroplus, Ramage's main fuel supplier, halved the company's credit limit, reduced it again in December 2007 before removing it altogether. At no time, claims Ramage, had it not paid Petroplus or been late with payments. In the context of this and several other events, Ramage instructed Scott Moncrieff to seek a buyer for a second time, however, no interested parties were found.
As MT went to press, Gary Fraser from KPMG says: "No date has been set for a creditors' meeting 48 staff remain on board and the warehousing operation is still trading, for which we are seeking a buyer."
