Jobs safeguarded as administrators save mail firm

Yorkshire administrators have helped safeguard all eight jobs at a Manchester mail delivery firm after it was sold in a pre-pack deal to existing management.

Joint administrators Kelly Burton and Lisa Hogg from Sheffield-based Wilson Field were called in by directors of FX Sameday on October 12.

The company, incorporated in 2001, had suffered severe cash flow problems following a series of events including the loss of a contract following a burglary.

Forward Xpress bought the company for an undisclosed fee with all eight staff being transferred to the new company under TUPE.

As well as saving jobs, estimated redundancy and holiday pay totalling more than £117,000 were mitigated, resulting in a better return to creditors.

Burton, director and insolvency practitioner at Wilson Field, said: “The directors approached Wilson Field for advice as the company faced severe cash flow problems.

“This had followed a series of events including the loss of a contract following a burglary, leaving the company with surplus capacity and difficulty arranging insurance at a reasonable rate. Vehicle breakdowns further impacted on profit margins and cash flow.

“The business and assets have been sold in pre-packed sale to Forward Xpress Limited operated by the same management team.

“Eight jobs have been saved by the transfer under TUPE to the new company.”