John Dee calls in the administrators
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by Miles Brignall and Derren Hayes • Dozens of small haulage firms face possible bankruptcy after the directors of County Durham-based John Dee called in administrators. The company owes £4.2m.
The future of around 100 drivers working at the company's five depots is also in doubt, and the whole business is up for sale, after directors called in administrators last week. It is the second time a John Dee company has got into trouble: at the end of 1990 the John Dee Group called in receivers. The present company, which is continuing to trade under the administrators, had a turnover of £11m last year; its customers include DIY group, Magnet.
Creditors were sent letters on 5 November promising cheques for thousands of pounds owed . The cheques were not sent and the company appointed administrators the same day. Two directors resigned just before the administrators were appointed.
Now many creditors, some of whom are individually owed more than £20,000, say they may be brought down. One creditor says he has been paid 10% of the money owed but he has been told that is all he is likely to get. Other creditors report being asked by John Dee to increase the number of vehicles working upon its contracts just months John Dee: Drivers' jobs at risk as administrators are called in. ago. Administrators Casson Beckman & Partners says all sub-contractors undertaking work for the administrator are guaranteed payment. Preferential creditors, including PAYE drivers, will receive money owed. Only after they have been paid, and if there is any money left, the unsecured creditors will be paid, he says.