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Global Shipping Services lost £271k before demise

6th February 2014
Page 8
Page 8, 6th February 2014 — Global Shipping Services lost £271k before demise
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Which of the following most accurately describes the problem?

By Chris Tindall warehousing firm had historically

PLUMMETING SALES and rising fuel prices meant Global Shipping Services Logistics made a pre-tax loss of £271,000 on a £7.7m turnover in the 10 months before entering administration (CM12 December), according to administrator Leonard Curtis. In a report from the insolvency practitioner, Julien Irving said the East Yorkshire haulage and

relied on subsidised rent from its group owners and the use of subsidised vehicles and staff. However, pressure on the group meant it was unable to continue the subsidies. Added pressure for payment from suppliers and subcontractors eventually led to the firm seeking advice from Leonard Curtis in October 2013. In the following weeks, a deal was struck to sell the warehousing

side of the company for £62,500 to a connected group business, Global Shipping Warehousing & Storage. However, despite 20 initial expressions of interest for the haulage business, no offer was received. About 20 trailers and a bonded fuel tank will be sold.

DVSA (formerly Vosa and the DSA) records show the firm ran from Grimsby, Goole and Hull and was authorised to run 100 vehicles and 170 trailers.