Gunns Transport collapsed owing C1.5rri
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daminic.perrytilrbi.co.uk GUNNS INTERNATIONAL Transport & Shipping had a total deficiency of £1.5m when it ceased trading in January, according to an administrators' report.
The statement of administrators' proposals. produced by Andy Pear and Ian Cadlock from RSM Tenon, shows that trade and expense creditors are owed a total of £294.435, while HM Revenue & Customs has outstanding debts of £411,160 from unpaid PAYE and VAT.
The report points to the recession, particularly the downturn in the construction industry, as being the main reason for the Erith, Kent-based haulier's failure. The firm had been the subject of an MI30 by directors Mark Minors and William Theakston in April 2008, with funding from Lloyds TSB.
The report adds: "The company had, before the MBO, achieved annual turnover of circa £8.3m in the 12 months to 31 January 2008, and trading carried on at similar levels immediately after the MBO. with turnover of £5.9m in the eight months to 31 December 2008.
However, in the 10 months to 31 October 2009. turnover slumped to just £4,5m as a consequence of considerable exposure to contracts in the construction industry that, as a result of the recession, had all but been put on stop by customers."
This put pressure on cashflow and the company struggled to service its bank debt and stay within supplier terms.
A review of the business was carried out in November 2009. It recommended that it be sold. However, despite al accelerated process, m interested parties wen found, it adds.
The final straw cam+ when the bank withdreN its funding on 1' January, which force the immediate closun of the business will 82 jobs lost.
Although the chatte assets and customer us were sold to Rochester haulier I Swain for £40,000, there has heel little in the way of other asset realised. RSM Tenon believes tha the prospect of a dividend paid unsecured creditors as "unlikely",