Transport firm calls in administrators amid perfect economic storm
A £4m Loughborough transport business has fallen into administration.
As we exclusively reported earlier this month, Eclipse Distribution Solutions, which was bought by private equity firm winch & Co in October 2021, had posted a notice of intention to appoint administrators, just over a year after being snapped up.
Now, Eclipse has appointed Mike Kienlen and Daryl Warwick of Armstrong Watson as joint administrators.
When Winch bought the firm in October 2021, Eclispe operated over 40 lorries, as well as sprinters, vans and other transport vehicles.
In its latest available accounts, made up to June 30 2021, Eclispe employed 37 people.
In August this year, Winch invested £550,000 to see off threats such as a driver shortage, fuel price hike and the cost of living crisis brought on by disrupted supply chains because of the war in Ukraine.
At the time, the management teams of both Winch & Co and Eclipse Distribution admitted the transition hadn’t been as smooth as other acquisitions.
In August, Debra Hart, chief commercial officer at Winch & Co said: “Eclipse has had its challenges, but with the new investment approved by head office, we have already been able to stabilise the firm.
“It has also allowed us to think about growth and better integration with our other transport businesses.”