More than 440 staff axed as logistics firm ceases operations
All operations at a Birmingham-headquartered logistics firm have ceased and 444 staff have been made redundant with immediate effect after the group fell into administration.
Kroll were appointed as administrators of the Lloyd Fraser Group including its five subsidiaries by financial services firm Close Brothers, with operations shutting down on September 22.
A statement said the move cast into doubt the fate of 700 jobs and threatened the future supply of milk in the UK and the fashion industry, as Lloyd Fraser supported major milk clients and delivered more than 50 million garments every year.
Kroll told TheBusinessDesk.com that it has, “worked alongside the milk distributors to implement contingency plans to ensure that there was minimal disruption to milk collections and supply. The Administrators are working closely with the Group’s retail customers to repatriate undelivered stock”.
A spokesperson for Barbican Capital said on Monday: “Barbican Capital, the owner of the Lloyds Fraser group of companies, is appalled by the actions of Close Brothers Limited and Close Invoice Finance Limited which, we believe, has led to our group of companies being incorrectly placed into administration and unnecessarily losing related licenses required to meet our customers’ needs.
“The actions of Close Brothers has had a major impact on the supply of milk in the UK, as well as the fashion industry – two sectors which Lloyd Fraser Holdings provides vital logistical support to. Without any warning, our employees, their families, and our customers have seen their employers and suppliers, each a viable business, closed quite literally overnight due to the unnecessary and irresponsible actions of Close Brothers, despite the solvency of the companies.
“This goes way beyond the closure of a bank account. This is ‘debanking’ on a terrifying scale which will have an impact on hundreds of employees, the UK’s hard working milk farmers and the nation’s industry”.
Administrators said they have retained a small number of employees to assist with the administration and are supporting former employees in lodging claims for their statutory entitlement.
Barbican Capital has been contacted for comment, with no immediate response received.
