Partner Article

18 jobs saved despite Border Traffic Service Limited entering administration

Thirty year old, family run, haulage and pallet business Border Traffic Service Limited, which employs 32 people from sites in Berwick upon Tweed and Cramlington, has been placed into administration but part of the business has been saved.

Greg Whitehead, a restructuring specialist with Northpoint Insolvency Practitioners, was appointed Administrator of Border on 23 July 2015.

Greg commented “The business had been trading through difficult times for a couple of years but the recent loss of a significant customer resulted in losses being made and the operation was no longer viable in its current form.

“I was introduced to the company’s management when a marketing effort to sell the company had attracted interest but no deal could take place due to the company’s insolvency making a share sale impossible.

“However, through an Administration process part of the business and assets, essentially the haulage operation, has been sold to trade buyers saving 18 jobs and there is a good prospect that trade creditors will receive some money back”.

Two interested parties who are established operators, Olivers Transport Limited of Kelso and Drysdale Freight Limited from Scotland, have joined together to make the purchase through a joint venture vehicle, Border Traffic Transport Limited.

Kenneth Oliver, representing the purchasers, said: “We have known of Border Traffic for many years and it has been a respected operator working throughout the UK from its Northumberland base.

“It was sad that the company itself could not be saved but that was not feasible in the circumstances however the transaction we have completed with Mr Whitehead has been a good outcome given the situation.”

Advisors in the matter include Muckle Solicitors acting for the Administrator and Sintons Solicitors advising the purchaser.

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.