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Sims completes pre-pack deal

22nd November 2012
Page 6
Page 6, 22nd November 2012 — Sims completes pre-pack deal
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Which of the following most accurately describes the problem?

By Ashleigh Wight

THE MANAGEMENT team at Sims Worldwide Logistics has completed a prepack administration, after the Stockportbased operator got into trouble over a debt owed to HMRC.

Sims Worldwide, which has the same directors and shareholders as the previous business, emerged from the administration process on 30 October after its assets were purchased for £72,500.

A letter sent to creditors by administrator Leonard Curtis Business Rescue & Recovery after its appointment on 29 October, seen by CM, revealed Sims Worldwide Logistics owed £183,000 in VAT and PAYE to HMRC as of August 2012. The letter stated a pre-pack administration was the best option for the firm, as it allowed it to continue trading, prevented job losses and gave it the ability to renegotiate with creditors. The course of action was put forward after HMRC turned down a request for more time to settle the debt. Sims Worldwide Logistics made a loss of £128,000 in the full year to 28 February 2011 after two years of declining profits.

According to the administrator, it made a trading loss of £8,000 in the period running from 1 March to 29 October. Turnover had also fallen steadily, from £5.6m as of 1 March 2008 to £2.9m by 28 February 2012. The firm blamed the increasing fuel costs associated with running a fleet of 25 vehicles for its financial troubles. In 2011, it had its £200,000 working capital facility withdrawn by its bank.

The company, which provides transportation of hazardous goods and has daily European haulage routes, has now applied for a new O-licence under the name of Sims Worldwide. Sims Worldwide and administrators at Leonard Curtis were unavailable for comment as CM went to press.


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