730 jobs go at collapsed logistics firm
Some 730 people will lose their jobs after the collapse of the KNP Logistics group, it has emerged.
Earlier this week, we reported that 170 jobs had been saved at one of the firms in the group, Nelson Distribution, was bought by Macclesfield-based Kinaxia Logistics.
However, the rest of the Kettering group has been plunged into administration with all staff laid off, said joint administrators Rajnesh Mittal and Philip Armstrong of FRP Advisory.
Nuala Toner of employment law firm Nualaw, told TheBusinessDesk.com: “We’re dealing with queries from the dismissed employees who intend to claim compensation for the failure to undertake consultation and intend to bring a claim at the employment tribunal.”
KNP also owned 158-year-old haulage firm Knights of Old – name which will now disappear.
The company has suffered a major cyber attack in June – after which it struggled to find further investment.
KNP was formed in 2016 when Knights of Old was merged with Derby-based Nelson Distribution, along with Isle of Wight-based Steve Porter Transport and Merlin Supply Chain Solutions, located in Islip and Luton.
KNP filed a notice of intention to appoint an administrator on Friday September 22.
Kinaxia stepped in to acquire Nelson Distribution’s 117-strong fleet, premises and customer base. All 170 Nelson Distribution staff are transferring to Kinaxia under TUPE arrangements.
Mittal, said: “Despite being one of the UK’s largest privately owned logistics group, KNP fell victim of a ransomware attack earlier this year that caused significant disruption.
“Against a backdrop of challenging market conditions and without being able to secure urgent investment due to the attack, the business was unable to continue. We will support all affected staff through this difficult time.”