Third time round
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for failed haulier SHOULDN'T PAY
by Derren Hayes • A director of a failed company that continued trading while amassing a £1.1m debt has set up business again just weeks after going into liquidation.
Media distribution specialist Acorn Freight Corporation, based at Polegate, near Eastbourne, was placed into liquidation on 6 November. Nearly 30 drivers were made redundant without pay.
A creditors' meeting on Monday (20 Nov) heard that Acorn was formerly known as JJ Adam.
General haulier 11 Adam went into liquidation and was taken over by Acorn Freight Corporation of Batley and renamed Acorn Freight European. Subsequently the Polegate firm was renamed Acorn Freight Corporation, while Acorn in Batley changed its name to Lightsave. Kenneth Hanson and Peter Nelson became directors of Acorn in Polegate. Between April and October Acorn lost nearly
£300,000 running up debts of 0£1.1m against assets of £192,000. Following Hanson's death Lightsave was placed into liquidation on 25 October with debts of £677,000.
Nelson told the creditors' meeting that while both Lightsave and JJ Adams were insolvent before the takeover, the theory was that by pooling the assets and business of both companies they would be viable. Nelson said although he was financial director of Acorn Freight, Hanson took all the key decisions: "Everything went over my head," said Nelson. "I do not know what was on his mind because he simply didn't consult me."
Asked why as financial director he did not know the extent of the company's financial trouble, Nelson said: "Mr Hanson told me not to worry as he was dealing with it, I was given the task of prolonging Lightsave's life." Lightsave was known as Acorn Freight Corporation until changing its name to Lightsave in June 1995. It had major distribution contracts with national newspapers and magazines.
These contracts have been transferred to a new company, Mediamax, based at the same Batley depot as Lightsave. Nelson is a director of the new company.