Kintore-based Caledonian Logistics, a major Aberdeenshire haulage company, collapsed with debts exceeding £5 million, according to a new administrators’ report. The company, which employed around 130 staff across depots in Inverness, Oldmeldrum, Kintore, and Cumbernauld, went into administration just two years after being acquired by English firm Drac Logistics.
The company cited “challenging trading” conditions and a lack of funding support from its parent company as primary reasons for its downfall.
A spokesperson for Glasgow-based accountancy firm Johnston Carmichael, the appointed administrators, stated:
“This follows a period of challenging trading after the company was acquired in October 2022 which was subsidised by its parent company.”
The administrators’ report revealed a total debt of approximately £5.08 million at the time of collapse. This included £1.2 million owed to invoice finance company Bibby Financial Services and £1.1 million claimed by HMRC. Unsecured creditors submitted claims totaling £2.9 million, most of which came from the parent company, Drac Logistics.
The administrators highlighted the bleak outlook for unsecured creditors, noting: “It’s not anticipated a dividend will be paid to unsecured creditors.”
The report further explained:
“The information at the date of administration suggested that the value of the sales ledger was £2.2m. However there was insufficient information available regarding the recoverability of the ledger to determine whether any surplus would revert to the administration after Bibby’s debt had been settled in full.”
Despite the collapse, the majority of the 130 jobs at risk were saved, with two new operators taking over some of the company’s assets. GS Light Haulage, based in Aberdeen, took on the Palletways contract, saving 60 jobs at the Kintore, Inverness, and Lockerbie bases. However, three employees were made redundant.
GS Light Haulage owner Johan Skea commented:
“With the regrettable downfall of Caledonian Logistics, an opportunity to grow GS came with the offer of a new contract with Palletways. GS Light Haulage agreed new terms with Palletways and became a fully paid up member within their network thus securing jobs that would have otherwise been lost with the demise of Caledonian Logistics.”
The administrators’ spokesperson noted:
“While the company had successfully cut costs and increased turnover, its return to profitability required ongoing funding by its parent company. The company recently attempted to sell the company or the underlying business and assets, but these efforts were unsuccessful and the company ceased trading prior to administration. Fortunately, the large majority of jobs have been retained as a result of new operators picking up the routes the company serviced with the additional benefit of minimising the impact on customers.”
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Kintore councillor Glen Reid said:
“The news of Caledonian Logistics, who are a large employer in Kintore, going into administration, is a terrible blow for the community, but it must be absolutely devastating for the workers, and their families, especially at this time of the year. I am heartened that GS Haulage Ltd stepped in a few days before and, having taken on the large Palletways contract, managed to save around 55 jobs.”
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