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Speedwell hit as Nexday folds

4th June 1992, Page 12
4th June 1992
Page 12
Page 12, 4th June 1992 — Speedwell hit as Nexday folds
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Which of the following most accurately describes the problem?

• The Speedwell Group has been forced into liquidation after the collapse of its express parcels operation, Nexday, whose 31 franchisees are owed between £500,000 to £1m by the parent company.

Speedwell founder and nonexecutive director Fred Stevens is attempting to mount a rescue package for its distribution business which operates separately from the Nexday parcels operation.

"The basic problem has been that the Nexday franchisees have not been putting enough business through the system," says Stevens, whose Speedwell business employs 100 people and runs 50 vehicles from its Sandbach base.

Stevens says he repeatedly warned the Nexday franchisees that unless more business was forthcoming there would be a financial crisis. He adds that a plan to rescue Nexday failed becuase five major franchises pulled out last month. Some have joined rival operator Panic Link.

Speedwell acquired Nexday in August last year. In November Speedwell managing director Lance Anderson, who resigned last month, told CM: "Since we acquired Nexday, it has gone from strength to strength."

Panic Link chairman Eric Norman says 14 Nexday franchisees have applied to join his operation. They are owed a total of £472,000 by Speedwell. Two, based in Leeds and Hull, are owed £100,000 each and a Durham operator is owed £60,000. Norman has taken on nine of them.

Norman says he was approached earlier with a view to buying Nexday. He blames its collapse on "remote management, a poor computer system and bad financial control."

Bromsgrove-based, Jeff Rea, who is owed a "substantial amount", resigned his Nexday franchise for Worcestershire to join Panic Link. He says most of the franchisees did a "marvellous job" and blames Nexday's collapse on an accounts system which was a "shambles" and poor management.

Rea says that Speedwell began putting Nexday debts out to factors after buying the business last summer. Although this raised cash franchisees did not receive full payment. "The service has improved 100% since we joined Panic Link," says Rea.

London-based Sorskys has been appointed liquidator and has called a creditor's meeting on 8 June at the Chimney House Hotel, Sandbach.


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