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Rivals swoop on Gloystarne work
Page 6
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• The future of troubled Rotherham transport firm Gloystarne is in doubt this week as rival operators begin to cherrypick its more lucrative contracts.
Gloystarne was placed into administration in February due to a cash crisis at the firm, with accountants Ernst & Young looking to sell the business as a going concern ( CM27 Feb-5 Mar).
However, Gloystarne has already lost a contract in South Wales with Georgia Pacific, formerly British Tissues, to rival Llanelli-based transport operator Owens Road Services.
The contract switch, which sees Owens opening a new operating centre in Bridgend, is an ironic twist as British Tissues owned and operated Gloystame until a management buy-out in 1994.
A spokesman for Owens says that if the South Wales operation is a success, then the contract may well be extended nationwide. He adds: We are delfghted at any new business, especially working with a firm like Georgia Pacific."
However, a spokeswoman for Ernst &, Young says the operation was not "costeffective", and confirms that 41 employees in South Wales have been made redundant.