...and one in the Midlands
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• A parcels delivery firm with 26 trucks went bust after being hit by increasing fuel prices and rocketing accident insurance premiums.
Twenty-four drivers and staff have lost their jobs at K Blakemore Express Parcel Delivery (Wolverhampton). The statement of affairs shows a deficiency of 2145,000 and liquidators Moore Stephens of Birmingham reports that the company has 46 creditors.
A statement by the liquidators says: "K Blakemore was incorporated in July 1979 and employed 24 drivers and staff— Bearing Services Ltd being the main customer. Since 1997 the price of fuel has increased 30% and the company was unable to negotiate price increases to cover the extra costs until June 2000 when an increase of 2.5% was attained with BSL and an average of 5% with remaining customers.
"Furthermore, during 1999 and 2000 there had been a number of accidents involving company vehicles which gave rise to insurance premiums rising by 300% over a two-year span.
"The company also experienced difficulties in maintaining the level of good drivers to service the requirements of its customers and the need to pass work to outside firms became more prevalent during the past few months."
Moore Stephens adds that the company realised the ensuing VAT liability could not be met and the auditors declared the company insolvent.
A charge of overloading against one of K Blakemore's vehicles was withdrawn by the Vehicle Inspectorate at Lichfield & Tainworth Magistrates Court on Wednesday after it was disclosed the firm had gone into liquidation.
A similar charge against the company's driver, Andrew Jones of Wolverhampton, was also withdrawn.