Eagle takes off again
Page 14
If you've noticed an error in this article please click here to report it so we can fix it.
• Stricken parcels carrier Eagle Express has been relaunched by its ex-managing director and 30 former franchisees, days after its previous owner Eagle Trust folded it forecasting it would need £7 million to stay afloat.
Eagle Trust, which bought the then-Connect UK in April, ended its commitment to the carrier at Christmas when it decided that its projected 1989 turnover of £25 million would be up to £7 million short of an acceptable level.
Managing director David Featherstone has linked up with a consortium of larger former licenced carriers to launch a slimmed-down version of the company under the old Eagle Express name. It will employ 170 of the former 450 staff and instead of eight depots will run only three, in Bolton, Birmingham and Slough.
The new Eagle Express began business on 3 January and carried 10,000 consignments on its first four days. Featherstone predicts that the company will break even on 5,000 parcels a night which he expects to reach by midFebruary.
The 30 carriers are all shareholders in the operation, which is being capitalised at £1 million. They are each giving 90 days credit to the company. Featherstone and operations manager Phil Duckworth are also putting up personal capital.
The shareholders include Hollis of Reading, Spittalls of Glasgow, Swains of Shropshire, Dennis of Barnsley, Madderns of Exeter, Curtis of Oxford and East Anglia Distribution Services of Norfolk.
Featherstone says the old system of using 180 licensed operators was ''too cumbersome", adding that the aim is to "slim the company down to its bare bones" until it becomes profitable. "We won't be competing with the big boys yet, despite what was said in the past," he says.
Eagle Trust is taking on all the liabilities of the old company, but several former franchisees, including AC Buckman of Pulborough. Sussex, and Wilkins Transport of Guildford, Surrey, are worried about having their claims met. The previous system meant that operators were not paid for carrying parcels until 21 days after the end of the following month.