Teesside Logistics sinks with £175,540 deficiency
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By Joanna Bourke
THE DIRECTOR OF failed Teesside Logistics set up a new company before the business entered liquidation with a deficiency of £175,540.
Colin and Gordon Mitchell, directors of the Stockton-on-Tees haulier, appointed Gareth Rusling and John Russell of The P&A Partnership as joint liquidators of the company on 28 April (CM 12 May).
CM can now reveal that at the date of the liquidation, the firm, which had an O-licence for 12 vehicles and six trailers, was able to pay preferential claims of £9,505. However, it had minimal assets left to pay unsecured creditors, which had submitted claims totalling £173,990.
HM Revenue & Customs was owed £45,426, while trade creditors, made up of haulage subcontractors, solicitors and tyre firms, were owed £39,842. Teesside Logistics left a deficiency of £175,540.
Colin Mitchell tells CM the company was unable to recover from debts incurred dating back to January 2010, when it lost a distribution contract with Asda to Wincanton.
“The deal was one of our biggest revenue streams, worth about £18,000 a year. We disputed the termination of the contract but lost, so had to pay legal costs totalling £20,000. We were not able to recover from this,” he says.
It is not the first time that the Mitchells have experienced insolvency: both were former directors at Mitchell Warehousing and Mitch ell Trucking Co (pictured left), which entered administration in 2010 and 2008 respectively.
Mitchell registered a new company, called Mitchell Trucking Ltd, on 11 April and bought some of Teesside’s vehicles.
“I am hoping to build up the new company slowly and am confident it will be a strong firm,” Mitchell adds. He has since applied to Tom Macartney, North Eastern Traffic Commissioner, for an O-licence for six vehicles and one trailer.