Through The Night collapsed Les Hughes owing creditors £793,000 tyre system
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joarina.bourkeidrbi.co.uk A GRADUAL erosion of profit margins coupled with a 35% drop in revenue led to the collapse of Northamptonshire haulier Through The Night (UK), leaving a deficiency of nearly £800,000.
Simon Plant and Daniel Plant of SFP were appointed joint administrators of the Crick-based business on 21 September, which ceased trading in August (CM 16 September).
The company was set up to take on the business of director Simon Longhurst's previous company, Arch Express. which had gone bust in March 2009.
According to the statement of administrators' proposals, Through The Night acquired the assets of Arch for £250,000, but there is still £97,500 from the sale outstanding.
Although the firm had initially generated reasonable volumes, with the vast majority of its work coming from agricultural and construction equipment manufacturer it continued to make losses. Longhurst told the administrators. The company's position had deteriorated by December 2009, prompting its invoice discounting provider, Bibby Financial Services, to order an independent business review Longhurst said he expected profit to rise during the company's busy period in the summer, which would clear some of the liabilities arising from the low volumes in late 2009. However, this did not materialise, with turnover in spring-summer this year 35% lower than forecast.
"As a result, the company's cashflow position deteriorated and it became unable to service its liabilities, as and when they fell due," the administrators' statement notes.
Faced with a winding-up petition from HMRC, chasing a debt of £125,000, the firm ceased trading on 12 August with all its employees sent home and work taken on by Essex-based A rcese UK.
In total, unsecured creditors are due £821,195, with trade and expense creditors owed £695,195: the total deficiency stands at £793,995, Unsecured creditors are unlikely to see a dividend, the administrators say.