TAL Logistics Group firms owed £6m upon collapse
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dominic.perryrarhi.co.uk THE FAILED HAULIERS trading under the TAL Logistio Group umbrella owed nearly Om when they ceased trading in April this year, according to documents just filed at Companies House.
Administrators from Grant Thornton were appointed to Sheffield-based TAL Logistics Group — which comprised TAL Eurospecial, Gallacher Bros (Haulage), Phillips (Seahouses), TAL Galaxy and TA L Freeway — on 12 and 13 April.
According to the statement of administrators' proposals, prepared by Joseph Mclean and Keith Hinds, unsecured creditors are owed a total of £2.4m, secured creditors £1.13m and Barclays Bank £2.59m. The administrators say they were initially brought in to the business by its auditors, Baker Tilly. in midMarch, where a review quickly concluded that a "significant cash injectionwas required in order for it to continue to trade.
Attempts were made to find a buyer for the business as a going concern prior to the appointment of administrators, but the report notes: "Regrettably they were unable to locate such a party."
As a result, once the administrators were appointed, all the businesses within the group ceased trading. The report explains: 'it was clear, therefore, that there was no prospect of rescuing the group. The only option available to me on my appointment was, therefore, to cease trading with immediate effect and make the majority of the group's employees redundant. The remaining employees were made redundant shortly afterwards."
TAL Logistics had grown rapidly in recent years with the acquisition of a number of haulage firms in the North-East. However, it appears that once the recession hit, the firm was unable to meet its borrowing commitments.
The administrators say that it is unlikely Barclays will be repaid its full £2.59m and estimate that unsecured creditors will also be left out of pocket.