Michael Magnay and Clare Boardman of Deloitte, the business advisory firm, stated the firm – which has a fleet of around 100 trucks and an annual turnover of circa £16 million – had 144 employees at the time of Deloitte’s appointment and “regrettably” 132 of them have since been made redundant.
According to Deloitte, due to certain client contracts, Duncan Adams has been incurring significant losses.
This, coupled with difficult trading conditions in the industry over the past couple of years, created cash pressure within the business.
Potential sale opportunities were explored by the business prior to the administrators’ appointment. However, in the limited time available, this did not lead to any serious expressions of interest. Accordingly, the administrators are implementing an organised wind-down of the business.
Mr Magnay, joint administrator, said: “Unfortunately, Duncan Adams Limited, like many in the haulage sector, has encountered difficult trading conditions in recent times.
“Although it had been hoped that a buyer could be found for the business, regrettably cash flow pressure greatly restricted the time available to explore this. Consequently, the director had no alternative than to appoint administrators which has ultimately led to the redundancy of the majority of the company’s staff.
“This is an extremely difficult time for everyone involved and we are providing our utmost assistance to those affected as well as liaising with the Scottish Government’s Partnership Action for Continuing Employment agency.”
The joint administrators invite any parties with an interest in acquiring the business or assets of Duncan Adams Limited to contact them on 0121 696 8569.