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Parcels firm starts the week by closing
Page 8
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Jennifer Ball reports on the collapse of parcels firm Hellmann Overnight Logistics.
PARCEL FIRM Hellmann Overnight Logistics (HOL) has gone into administration, blaming its collapse on increased competition.
The firm's parent company, Hellmann Worldwide Logistics UK (HWL UK), called in administrators BDO Stoy Hayward on 15 December. A spokesman reveals that HOL had been heavily subsidised for some time.
Some depots had also moved to rival networks, which forced the firm into buying in third-party distribution to maintain its service.
A limited number of HOL staff will be employed by HWL UK but there will be some redundancies, Network member Richard Fry, transport director at Somersetbased Framptons International, says: -We were actually five months into a six-month period of terminating our contract with them. One of our customers put 300 consignments a day through the system but the failure rate spiralledsothey went to another network and we lost confidence in dealing with HOL.
"It would have saved a lot of face if it had waited another week before shutting. when the bulk of the Christmas freight would have been cleared.As it is there are a lot of customers whose freight is still unaccounted for."
David Ruffles from AA Speed Couriers agrees: "They could have closed down the firm a hit more gracefully than on a Monday morning when freight had already gone into the network." And James Martuccio. MD at Hampshire Freight Services says the collapse could cost his firm up to £30,000.
HWL UK managing director David Meyer says: "We are deeply sorry that it has been necessary to close HOL, with the resulting impact on staff and customers. At this time our entire focus is on helping our staff through this situation."