Palletforce was worried about Dodd’s takeover
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By the CM team
PALLETFORCE put a contingency plan in place after the change in ownership at Dodd’s Group earlier this year. The move was a fall-back to ensure continuity of delivery in the ME postcode, CM has learnt.
Following the purchase of Dodd’s parent company 21st Century Logistics by Swedish businessman Fredrik Helander on 21 April, Palletforce took the action after being unable to meet the new owners face-to-face.
Palletforce chief executive Michael Conroy paid tribute to the team at 21st Century Logistics, which entered administration last month (CM 1 September) commending their professionalism.
However, he says: “Having been aware of the change of ownership earlier in the year, contingency plans were already in place as we were unable to arrange a meeting with the new owners.
“The overriding objective is always to ensure our members and their customers continue to receive a high-quality service and are not affected by this situation.” The pallet network says it is now exploring long-term options to cover work in the area.
The news came as it emerged that David Pink, former MD of 21st Century Logistics, tried to rescue the irm before it entered administration.
Pink left the company in June after it was sold to Helander, who subsequently became director at 21st Century Logistics on 20 May. Former director Jim Dodd left on 26 May.
Speaking exclusively to CM sister title Motor Transport, Pink says that on Thursday 25 August he made an offer to Israeli Bank Leumi, which had inanced the
purchase of 21st Century Logistics by Helander.
He reveals that 21st Century Logistics had a inancial covenant with Bank Leumi that the net asset value of the company could not fall below £850,000.
Pink offered the £100,000 shortfall to the bank to keep Dodd’s out of administration. However, on 26 August he was informed that Paul Williams and Jason Godefroy, partners at MCR, had been appointed joint administrators.