Joint Provisional Liquidators were appointed at Freight.co International Limited, Freight.co Rapid Despatch Limited and Crate.co Limited on Monday 24 June.
Freight.co International operated from its headquarters on Howe Moss Drive, Dyce and ancillary offices in Glasgow.
19 of the group’s 24 employees were made redundant with immediate effect. Five employees have been retained to assist the Joint Provisional Liquidators to realise the Group’s assets and collate the books and records.
Although the current group companies were established in 1990, 1993 and 1984, the FreightCo group has traded since 1978 via other entities. The Group operated a logistics services business, primarily within the oil and gas sector.
In recent years, the Group has suffered from challenging trading conditions in the oil and gas sector. Reduced turnover and margins, combined with longer payment terms from customers, left the company with a significant funding shortfall.
The directors had been in discussions with a number of parties to purchase the business, however, it was not possible to complete a sale and due to increasing creditor pressure, the directors felt they had no option other than to appoint provisional liquidators.
Blair Nimmo, Global Head of Restructuring for KPMG and Joint Provisional Liquidator, said:
“Despite some recent positive signs in the oil and gas sector, the market remains challenging for SMEs in particular and our appointment today is another example of the challenges which the industry continues to face.”
“The Group is a long established business and has a wide client base which includes some global oil and gas companies.”
“We would encourage any party who has an interest in acquiring any part of the business and its assets to contact us as soon as possible.”
“We will be working with employees and have already initiated matters with relevant government agencies to ensure the full range of support is available to all those affected.”
Anyone with an interest in buying the business or assets of the company should contact Geoff Jacobs, Joint Administrator, on 01224 591000 or in writing at the address below.