Aberdeenshire Haulier Enters Liquidation Amidst Sector Headwinds
Long-established VG Mathers Limited cites soaring operational costs and market pressures, reflecting broader challenges for UK road freight.
VG Mathers Limited, an Aberdeenshire-based haulage and vehicle repair firm with a history spanning over five decades, has ceased trading and entered liquidation, resulting in the loss of seven jobs. The closure is attributed to a sustained period of challenging trading conditions that have significantly impacted the UK’s road transport sector.
Michael Reid, head of insolvency services in Scotland for MHA, has been appointed liquidator. Operating from MHA’s Aberdeen office, Mr Reid commented on the situation, stating: “VG Mathers is a further example of a business facing significant pressures, unfortunately resulting in job losses. Our priority is to work with stakeholders to manage the process as smoothly as possible.”
Colin Mathers, director of VG Mathers Limited, expressed the gravity of the decision: “It is with a heavy heart that we announce the closure of our business. For years, our team has poured everything into keeping our wheels turning, but we have ultimately been overwhelmed by a relentless series of challenges.”
Mr Mathers highlighted the systemic issues afflicting the industry: “In this industry, we are used to navigating tough times, but recently it has felt like one thing after another. We are far from alone in this struggle: with around 400 UK road haulage and freight companies closing in 2025 alone, our demise is a symptom of a much larger crisis hitting our sector. We have faced an unprecedented squeeze from every angle – skyrocketing fuel costs, soaring insurance premiums, mounting compliance burdens and the rising costs involved in vehicle maintenance.”
He further elaborated on the financial strain: “We fought hard to absorb these costs, but the compounding pressure severely choked our cash flow. Without the financial cushion to withstand any payment issues or fluctuating customer demand, we reached a point where continuing to trade became impossible.”
“I want to express my deepest gratitude to our loyal staff, our dedicated drivers and our wonderful clients who stood by us. This is a very difficult outcome for us and our team, but the economic reality left us with no other choice,” Mr Mathers concluded.
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A Sector Under Pressure
VG Mathers, established in 1968 by Colin’s father, Vic, provided a range of services including inspections and repair work. Its collapse underscores the severe headwinds currently battering the British road haulage industry, a vital component of the UK economy responsible for moving 89% of all goods, including 98% of food and consumer products.
The statistic cited by Mr Mathers regarding company closures is consistent with recent data. In 2025, 407 road haulage and removals companies in England and Wales entered insolvency. While this marked a slight decrease from a peak of 501 in 2023 and 472 in 2024, the 2025 figure remained significantly higher than the 282 failures recorded in 2019, before the pandemic.
Industry experts and bodies like the Road Haulage Association (RHA) and Logistics UK have consistently warned of the precarious state of the sector. Profit margins for many haulage firms are notoriously tight, often ranging between 3-5%, making them highly vulnerable to cost increases. Many companies also operate with minimal cash reserves, exacerbating their exposure to financial shocks.
