Haulage is full of 'zombie firms By Chris Tindall and
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Ashleigh Wight HIGH STREET failures, a stagnant economy and the price of fuel have created a 'zombie' nation of hauliers, according to insolvency trade body R3. R3's research suggests there are 8,000 "zombie businesses" in haulage, defined as firms that can afford to pay interest on their debt but not the debt itself.
The revelation came as Holywell, Flintshire haulier RJ Jones Haulage was rescued from administration in a pre-pack deal that saved 145 jobs. The firm said an accumulation of a debt, the loss of a major contract and a delay in new contracts starting meant its directors felt they had no option. It went into administration on 5 March before being snapped up by RJ Jones Group. It is just one of the recent failures, restructures or takeovers since the new year [see box].
Jack Semple, director of policy at the Road Haulage Association, said: "Diesel prices are at an alltime high and that is going to lead to new pressures. The Christmas spike last year was not as strong and the start of the new year is when firms run out of money."
Steven Law, R3 policy chairman and partner at Baker Tilly Restruc turing and Recovery, said: "Some of these zombie businesses have been in distress for some time. One reason for this might be the knock-on costs of failures in the high street as there are fewer imports to haul around."
• Do you think the legislation that allows pre-pack sales of failed firms to the existing management should be rewritten, effectively banning them? Tell us what you think in this month's Trucking Britain survey at commercial motor.com/truckingbritain