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Red Star goes on the market

24th June 1993, Page 12
24th June 1993
Page 12
Page 12, 24th June 1993 — Red Star goes on the market
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Which of the following most accurately describes the problem?

• British Rail officially put Red Star, its loss making parcels business, up for sale last week.

The contract to supply Red Star with road haulage, which is held by Coventry-based Roadexpress, will be included in the sale.

Roadexpress comprises more than 80 agents who handle 80% of Red Star's business, including same-day and next-day services. The agents operate around 500 vehicles collecting and delivering parcels to 230 BR stations.

"All existing contracts will be continued (when Red star is sold) and when they come up for renewal they will be looked at again and market forces will apply" says a British Rail spokesman.

Management at Red Star have put forward a buy-out plan: Roadexpress has applied for a memorandum of sale "and is considering all options", says a Roadexpress spokesman.

Red Star made a am loss on a £46m turnover during 1992/3. It employs over 1,200 people. I British Transport Police have lodged an advice file with the Crown Prosecution Service detailing a year-long preliminary investigation into the contractual relationship between Red Star and Roadexpress.


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