auliers wiped out b Bed collapse
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by Amanda Bradbury • Around 15 hauliers owed at least 1200,000 after the country's third largest seed trader went into receivership are calling on the Road Haulage Association to investigate the circumstances leading up to the receivership.
Two hauliers say they have been forced out of business as a direct result of Romsey, Hantsbased John Bryant Seeds Ltd's bankers calling in the receivers on 13 September. And the £10mturnover company's former transport manager has warned that other hauliers who worked for the company could follow.
The company's receivers, Price Waterhouse in Southampton, admit hauliers are unlikely to get their money back One of the insolvent hauliers, John Pearce Transport of Bishops Waltham, Hants, is owed £33,000 by the seed trader and declared himself bankrupt earlier this week. Owner John Pearce faces losing his house.
The other haulier is DK Freight of Petersfield, Hants, which is owed about £11,000 by Bryant Seeds, and declared itself insolvent last week.
The largest amount owed by John Bryant Seeds to a single haulier is over £60,000 to Janaway Farms of Basingstoke, Hants which operates 15 vehicles.
Allegations centre around the timing of when its banker, Hill Samuel, called in receivers at the height of the harvest when the company's stores were full.
Some hauliers and fanners, who are themselves owed around Lim by John Bryant Seeds, criticise the move to call in receivers at a time when the receiver would hold more seed which it mild sell off to pay creditors—including Hill Samuel.
The National Farmers Union confirmed that it is not ruling out legal action against Bryant Seeds, its receiver or its bank.
The union would not outline specific allegations, but NFU member Edward Eckley of Boarley Farm, Maidstone says that it is considering bringing a writ against Bryant Seeds connected with its trading activities: "Prior to September, the plants owned and hired by Bryant to clean and dress the seed were empty," he says. "After the second week of September many farmers and hauliers' cheques were due."
Hill Samuel says it cannot comment on these allegations for legal reasons, and joint receiver David Blenkarn of Price Waterhouse says he cannot comment on any matter relating to the company prior to his appointment.
Hauliers, as unsecured creditors, hold the same status as farmers in waiting to get their money back—but Price Waterhouse has offered farmers who own grain held in store some 65% of its contract price. Blenkarn says this was done to help sell grain now in store which farmers say they have not been paid for.
The company's receivership has taken all hauliers who worked for it by surprise: one ran a company check on the firm only three weeks before its receivership. John Bryant Seeds' last full accounts posted with Companies House show a pre-tax profit of £66,000 to the end of June 1992, compared with a £437,000 loss in 1991—but this year turnover fell by £5m to £10m.