Jobs blow as North-east courier firm SGM fails

Some 50 jobs have been saved but several others have been axed following the collapse of a courier business with depots in Letham and Aberdeen.

Shona Campbell of MHA Henderson Loggie. Picture: Contributed

The move follows the appointment of liquidators to SGM Distribution, which is said to have been experiencing “increasingly difficult trading conditions”.

While the majority of employees – 51 – have transferred to a new employer a total of 16 jobs have been lost.

Shona Campbell of MHA Henderson Loggie, who has been appointed liquidator, said: “Although the courier industry has seen significant growth on the back of the rise in online shopping, it is a fiercely competitive market and undoubtedly tougher for operators covering rural areas with sparse populations.”

Campbell, who is MHA Henderson Loggie’s director of business recovery and insolvency, added: “The failure of a business is hard for a community and I am pleased that we have managed to save a significant number of jobs.

“I am now focused on winding up SGM’s business affairs efficiently and ensuring that all workers that have unfortunately lost their jobs receive their full redundancy entitlements from the government’s insolvency service.”

Established in 2006, SGM Distribution offered a same-day delivery service throughout the UK and counted national brands and local businesses among its customers. It had a fleet of 47 delivery vehicles.