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AN sues client for 12.5m
Page 7
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• Leeds haulier APA Logistics is suing Poundstretcher for £2.5m following the termination of its distribution agreement, which was due to run until January 2006.
The move follows Poundstretcher's decision to switch contractors from APA to Northamptonbased C Butt.
APA is claiming unpaid invoices and damages for wrongful termination. The company believes that Poundstretcher's decision to end the agreement was made as part of a cost-cutting exercise, which began when new managing director, Angus Munroe, was appointed in September last year.
One of APA's directors, Alan Hodgson, says: "Everyone at APA put their heart and soul into the Poundstretcher job. We went beyond the terms of our contract by trying to help the company with problems it was experiencing in its warehouse. In return, it has stabbed us in the back."
The company claims Poundstretcher's actions have pushed APA to the brink of liquidation, and forced them to make almost all their staff redundant. However, the company is now confident it will survive to bring its case against Poundstretcher to a conclusion, due to support from its creditors.
A trial to determine Poundstretcher's liability is likely to come to court early in 2004.
Poundstretcher declined to comment in light of the court case. C Butt's managing director Clive Hodgkinson also declined to comment.
C Butt initially revealed that it had won a new contract with Poundstretcher at the end of July to make deliveries from Leeds and Newport Pagnall.