Administrator warns sector to be wary after failure to save Coolfruit and Phoenix Worldwide Squeeze killing hauliers

By Chris Tindall

Reports from the administrators of two recently collapsed hauliers have revealed the huge impact that reduced consumer spending and soaring costs are having on the transport and logistics sector.

In the first, the administrator of Kent-based Coolfruit said it had been unable to save the fresh fruit haulage business and was now attempting to sell off its assets instead.

The Ashford company, which traded out of two operating centres and held a standard international licence authorising 25 HGVs and 25 trailers, appointed administrators from SFP Restructuring on 28 April.

The haulage firm was formed in 2000 and SFP said it had successfully traded for many years before encountering numerous difficulties over recent times.

In a statement, the administrator said: “These challenges included rising overheads and operational difficulties, including the suspension of the firm’s operator licence.”

Documents published by the office of the traffic commissioner showed that Coolfruit had its licence revoked without a public inquiry at the beginning of 2023.

The statement added: “Professional guidance was sought in April 2023 and SFP conducted a review of the circumstances.

“The strategy included marketing the opportunity to try and salvage the business. Once it became clear, however, that saving the business was not viable, SFP commenced an orderly winding down of the company’s affairs and is now in the process of selling the company’s assets on a piecemeal basis.”

Administrator David Kemp said:

“With more and more companies being confronted with financial difficulties in the current economic climate, we urge directors to make themselves aware of the options available to them.”

Meanwhile SFP said a 33-yearold Warwickshire haulier had failed due to the cost of living crisis, which had squeezed consumer spending.

Phoenix Worldwide Logistics provided logistics and warehousing services to customers worldwide and traded out of depots in Dunchurch, Rugby and Coventry. It held a standard international licence authorising 29 HGVs and 29 trailers and it operated warehousing with 11,000sq ft of storage space.

But SFP added: “The company’s fortunes turned in 2022 when its turnover significantly reduced, mainly due to the cost-of-living crisis which put a squeeze on consumer spending.

“The company continued to trade by entering into a Time to Pay arrangement with HMRC and payment plans with large creditors.

“In March 2023, however, the directors took the decision to cease trading, no longer able to meet the business’ debt commitments.” n Alliance Transport Technologies, which specialises in the remanufacture of electronic components used to decarbonise fleets, has also fallen into administration after facing delays to the launch of a major new energy storage system (ESS).