Haulage firm saved from administration

Rotherham-based Meden Courier Services, which operated in haulage and distribution, has been saved from administration.

The firm operated from Hellaby, Rotherham, and Reading, and was placed in to administration last month. It has now been sold, saving 68 jobs.

Tracy Taylor and Nicola Kirk from Abbey Taylor Ltd Sheffield were appointed as joint administrators. Taylor said: “Due to external circumstances including volatile fuel prices and rising agency costs meant the once thriving company led the directors to place the business in to administration.”

Taylor added: “We have negotiated a deal that has been welcomed by the companies’ major creditor Mercedes and the new management team.”

“We have seen a number of once successful and thriving businesses struggle recently due to many external factors often out of their control. Uncertainty around Brexit and the consequence of a weaker pound has hit import costs hard linking to rising fuel costs and additional pressure from minimum wage all adding to this sectors challenges. We are seeing more companies over exposure to their clients, with Carillion the most publicised example and we are seeing the effects filter down to many smaller firms.

“Suppliers not paying on time and demanding longer terms – we are hearing that 120 days payment terms becoming the norm. This means cash flow is put under enormous pressure and in some cases this is becoming unmanageable for many cash strapped firms. The result all too often is a rescue package like the one we have just put in place at Meden.”