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Castle bought by Arrowpak

10th April 1997, Page 8
10th April 1997
Page 8
Page 8, 10th April 1997 — Castle bought by Arrowpak
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Keywords : Business / Finance

by Ian Wylie • The Suffolk removal and storage specialist Arrowpak has bought local rival Castle Transport at a knock-down price only a week after Castle called in the receivers.

Castle, which at one stage had a turnover of almost £2m and around 50 employees, fell into difficulties when it lost a crucial MoD contract at the beginning of this year. The company carried out removals for the MoD within Britain and Germany and also between the two countries.

Castle was set up in Brandon by managing director Graham Nellist in 1988 and diversified into furniture distribution across a wide base of customers, Its failure to retain the MoD contract for the Norfolk and Suffolk region pushed the business into the hands of receiver Coopers & Lybrand at the end of March.

The receiver made three people redundant last week, including Nellist. before Brandon rival Arrowpak bought the beleaguered business for a sum understood to be around £20,000.

Arrowpak managing director Robin Hood says he hopes to retain most of the remaining 20 employees and to maintain the fleet of five tractor units and five 7.5-tonne rigids.

Arrowpak, which has an annual turnover of £6m and whose customers include the US and Canadian governments, has 30 vehicles and specialises in domestic and international removals and storage. The company also has two customs-bonded warehouses and has diversified into specialised packaging services.

Hood says that Arrowpak approached Nellist last December with an offer to buy Castle, but withdrew when it realised the company was running into difficulties.

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