Receiver warns hauliers
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• BFI's receiver has warned that many more haulage firms will become victims of the recession.
According to BDO Binder Hamlyn partner Peter Dubuisson, BFI fell foul of a "continuing shortage of haulage" which made it impossible for the firm to meet payments on a fleet of 90 tractors and 300 trailers. "There is little doubt that the economic recession caused BFI's collapse," he says.
With too many trucks chasing a eclining amount of work Dubuisson expects many more haulage companies to fall into the hands of the receiver. "It's very bad news for the transport industry," he says. However, the failure of BFI will "perk up" a few companies which will pick up extra work as a result, he adds. Major BFI customers Boots and British Gypsum are among those who have switched to other hauliers.
There is no plan to revive BFI's distribution arm, but buyers are sought for a container base at Dagenham and a depot at Greenwich which offers truck hire and has a franchise for iveco Ford. Depots at Rainham and Borough hold Avis franchises and may also be sold as going concerns.
BFI's workforce has been cut from 220 to 132, few of whom are drivers. The Castle Donnington depot has retained 10 HGV drivers for processing goods which are still in the "distribution pipeline". When that work is completed the drivers will bring the remaining HGVs down to London where they will be stored to await repossession by HP companies.
Binder Hamlyn describes BM. as a "highly respectable, long established company" but says that major customers pulling out so quickly left it with no alternative but to shut down the distribution. "If we had kept going we would have just been burning cash," he says.