JBT holds on to repute and wins new 0-licence
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Operator that saw parent company MRS go into administration successfully obtains a new 0-licence
roger.brownfarbi.co.uk JBT DISTRIBUTION — which saw its parent company MRS Distribution go into administration last summer (CM12 August 2010) — has held on to its repute and successfully obtained a new 0-licence.
Richard McFarlane, Deputy Traffic Commissioner (DTC) for Scotland, told the public inquiry in Edinburgh last week he was satisfied Bathgate, West Lothian-based JBT had traded separately from sister company MRS, and granted its variation licence for 79 vehicles and 129 trailers Donald Carmichael and Ian Wilson, both former directors of MRS, led a management buy-out of JBT in August 2010 following the demise of the related company with a total deficiency of more than £20m. JBT acquired the entire Scottish operation of MRS, with 96 employees transferring to JBT.
According to Carmichael, MRS had started to experience a drop-off in volumes in about November 2008, and this had continued into 2009.
Carmichael said: "MRS was particularly badly affected by the economic downturn because it was servicing very high-volume manufacturing businesses in areas like plastics, tin packaging and paper.
"By contrast, JBT concentrated on the retail, food and drink markets and although it was not immune to the downturn, traded through it in a better state."
The hearing was told that in July last year, the MRS directors put the business up for sale, and circulated details to 80 companies in the haulage industry.
No company was interested in buying the whole of MRS, although Bibby Distribution subsequently took over two former MRS contracts in England.
Carmichael said: "What happened was the best possible solution, we could not find a better way of taking the business forward."
Michael Whiteford, from Glasgowbased Jeffrey Aitken Solicitors, representing JBT, told the hearing it was clear this was not a pre-pack or phoenix company scenario, no new firm had been set up and there was no misconduct on the part of the directors.
The DTC said: "I don't see anything here that interferes with the good repute of JBT the directors made the best of a bad situation."