TAL Logistics Group now Likely to be wound down
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chris.tindatIlarbi.co.uk THE ADMINISTRATOR of TAL Logistics Group says it has been unable to find a buyer for any of the five businesses making up the group and that they will now be wound down.
Joe McLean of Grant Thornton says the administrator is still in discussions with "one or two parties" interested in snapping up some of the group's assets, but that no-one was willing to offer enough money to buy a whole business and potential suitors would only agree to buy on deferred terms. TAL Logistic Group went into administration on 12 April after building up an increasing number of creditors.
"It was a business operating in a sector that is extremely competitive and price-competitive," he says.
"It was trading,but making waterthin margins. There was simply not enough to absorb the overheads leading to cash difficulties and insolvency. This was a business that was a victim of a sector that probably has too many suppliers and a lack of demand.
"The directors in the period immediately prior to the administration were working really very' hard to find a purchaser."
Shortly before the administration, the company's directors also tried to keep the group afloat by borrowing money from its bank in return for VED refunds as security.
McLean concludes: "What was interesting when talking to interested parties was that they were all talking the same language. They all wanted to buy the business, but didn't want to pay terribly much for the business and all wanted to buy it on deferred terms. And that in itself provides its own commentary."
The group consisted of TAL Galaxy, TAL Freeway, TAL Eurospe cial, Gallacher Bros (Haulage) and TAL Seahouses. During the year ended 31 March 2009. the TAL Logistics Group, essentially a holding company, made a profit after tax of £258,759 and at that date had net current liabilities of more than £1.9m. The accounts for that period state the 'company's bankers have indicated their willingness to continue their support for the company as long as it continues to maintain its accounts within agreed limits:Turnover for the period was £588,802.