Stoke-on-Trent fashion haulier enters liquidation

A Stoke-on-Trent based fashion logistics company has entered liquidation in order that its creditors can receive a dividend.

Fashionfast LLP was established 40 years ago and had a licence to operate 25 lorries out of its Fenton operating centre, but it entered administration last year after suffering several major bad debts.

Begbies Traynor says the largest of these was when Woolworths entered administration in 2009 and Fashionfast was forced to make 13 people redundant and sell several HGVs in order to ease cashflow problems.

Partners Maureen and Gavin Arnold invested almost £500,000 of personal funds but continued pressure from creditors and high fuel prices forced the business to seek insolvency advice.

A Begbies Traynor spokesman says it is unable to say yet how much they will receive, but in its report it confirms trade creditors should expect a distribution: “It is anticipated that unsecured creditors will receive a modest dividend payment. In order to do this the joint administrators shall exit the administration into creditors’ voluntary liquidation where they will have the powers to make a distribution.”