Subbies hit by second collapse in four months
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• by Melanie Hammond Subcontractors have been left reeling after an Essex-based haulier went into receivership just four months after his previous company failed leaving a huge trail of debts.
The extent of the debts left by Basildon-based Southern Distribution Services, which went into administrative receivership on 14 June, is not yet clear.
However director Martyn Hollands previous company. Hollands Distribution, was found to awe around £882.000 after its factoring company called in the receivers in February. Southern had taken over Hollands' business and assets and continued trading from its Paycocke Road premises.
Subcontractor Ian Gordon of Gordon Transport says he was forced to write off a debt of £16,000 when Hollands Distribution failed.
Gordon also agreed to act as guarantor on the lease for Hollands Distribution premises in 1995 and was left to foot a 08.000 bill to cover dilapidation and repair on the buildings.
It has also emerged that Hollands was a director of Ensign Transport, which went into administration in 1994. Ensign also traded from the Paycocke Road site.
CM was unable to contact Martyn Hollands who is understood to be spending three months in America.
A former Hollands Distribution employee says: "The company was spending more money than it had and hurt a lot of people in the process.
"Martyn Hollands has given himself a bad name as a director and will struggle to do business around here again," he adds.
It has been rumoured that Hollands now plans to take a job with Manchester-based AK Worthington, but the company strongly denies this.