Haulier collapses into administration as sale falls through
A Chesterfield haulier has entered administration after attempts to sell the firm fell through.
As we reported late last week, Home Delivery Solutions, based in Commerce Park, Duckmanton, ceased trading on Friday (July 5), with joint administrators Mark Malone and Gareth Prince from Begbies Traynor’s Birmingham office appointed on the same day. TheBusinessDesk.com understands around 90 jobs have been lost at the firm
Begbies Traynor says the company had sought advice on how to improve issues regarding its cash flow and growing legacy debts.
It was decided that an accelerated sale offered the best opportunity to save the business, which provided two-man delivery services across the UK.
To allow time for the sale process, Home Delivery Solutions filed a number of notices of intention (NOI) to appoint administrators.
A period of marketing attracted offers from multiple parties and a preferred bidder, which TheBusinessDesk.com understands was Vibrant Doors Holdings, was identified. Discussions with key customers regarding the provision of future services formed part of the due diligence process.
However, says Begbies Traynor as a result of “growing uncertainties” over the company’s ability to provide its services, some of its biggest customers sought alternative suppliers, leading to the withdrawal of the preferred bidder’s interest.
Other bidders who had shown interest in Home Delivery Solutions were contacted, but Begbies Traynor says it became clear that the only viable course of action was the managed wind down of the company’s operations.
Mark Malone and Gareth Prince of Begbies Traynor say they will now secure and realise Home Delivery Solutions Limited’s remaining assets and deal with employee claims.
