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Stiller Transport enters voluntary liquidation

28th May 2009, Page 6
28th May 2009
Page 6
Page 6, 28th May 2009 — Stiller Transport enters voluntary liquidation
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By Lindsay Clark and Christoper Walton STILLER TRANSPORT LTD, the wholly owned subsidiary of Stiller Group, is to be wound up after a voluntary liquidation, that will result in the loss of 24 jobs.

After a creditors' meeting, which was held on Tuesday (26 May). Stiller Group issued a statement saying it could not continue to support Stiller Transport Limited indefinitely without causing risks to the remainder of the group and its 300-plus employees.

Stiller Group also said that its turnover had dropped by some £20m by the end of 2008, with the majority of the losses coming from the general haulage subsidiary being severely affected by the recession hitting customers in the steel and construction sectors.

It added it had supported the "ailing businessto a level in excess of Elm, but it was with "great regret" it had reached the "difficult decision" to close the subsidiary.

However, Stiller Group stresses that Stiller Tankers Ltd and Stiller Warehousing and Distribution Ltd continue to trade profitably.

In February, Stiller Group, which owns Stiller Transport, said it remained confident about the future, despite revealing poor results for the year to 31 December 2007 This update also included information on its then 2008 trading position.

The same accounts showed Stiller Transport made a pre-tax loss of nearly Lim. At the time, Andrew Winney, financial director at the Stockton-on-Tees firm, said: "As the recession deepened, we shared with the bank [HBOS] our trading position; it was clear that the general haulage side of the business was suffering from a severe slowdown in steel and construction."

In April, Stiller Group sold off its training academy to the staff and management. The MD of the newly coined Evolution Learning, John Craig, said Stiller could no longer justify the extra investment running the subsidiary needed.

• Log on to www.roadtransport. corn for more on this, and see CM next week for further analysis.

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