Subbies hit by two failed firms in just four months
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• by Dominic Perry
Eye plc, the freight forwarding firm set up by the owners of failed haulier John Adams Si. Sons which promised to change an industry "notorious for slow payment", has gone into receivership after just four months leaving a trail of debts in its wake.
Hauliers already reeling from the closure of Adams in May now fear they may be forced under by the scale of Eye's debts.
Eye was set up only weeks before Adams went belly up, with director Jim Hay promising to change an industry "notorious for slow payment, a lack of respect and trust". Eye also promised to pay subcontractors within 14 days.
One disgruntled subcontractor blasts: "They promised us the earth when we started working for them, they told us we'd make a huge amount of money and payment would be within 14 days. "We've been on since the start of July and haven't received a penny" Subbie Mike Eger says that he was rarely paid within the timeframe: "I was only ever paid one cheque on time. Most of the time they were only a week late, but when you've got a contract to pay within 14 days it's just an abuse of trust."
Eger is owed £1,300 by the failed Linlithgow firm, but many other hauliers have been hit harder. Ron Conlin, who runs Cumbernauld-based First Class Haulage, says he is owed around £13,000; another subcontractor who asked to remain anonymous says he is owed 112,000; a third is owed £7,000, after being hit for £20,000 by the closure of John Adams.
Now, a third firm is offering to take up Eye's business. Finlay Guy Transport, based in Haddington, East Lothian, with depots in Cinderford, Glos, Birmingham and Linlithgow, has written to all of Eye's customers offering to continue working with them following Eye's demise. But according to the Scottish traffic office, the company does not currently hold an 0 licence for its Haddington site, although it has applied for one.
In a letter to customers, Finlay Guy managing director David Brown describes the firm as one of Eye's former contractors. He finishes by writing: "We have taken the opportunity to hire some the ex-Eye plc staff so you may get a well-known voice on the telephone."
However the links between the two appear to be deeper. Although neither Jim nor fellow Eye director Hazel Hay are listed as Finlay Guy's directors, Margaret Meiklem, Hazel Hay's mother, is.
Another subbie says that when instructed by Eye to collect a leased trailer from TIP, in Felixstowe, the trailer he was given was in Finlay Guy livery. He was later told by Eye that it had taken over Finlay Guy.
No one from either Finlay Guy or Eye Plc was available for comment, despite repeated attempts.
Although a creditors' meeting organised by Glasgow-based chartered accountants PKF has been cancelled, it has been confirmed that KPMG will be Eye's receivers. PKF also oversaw the liquidation of Preston-based Ditchfieid Transport, of which Jim Hay was found to be a "shadow director".