Liquidators have been appointed to SGM Distribution. The majority of the 51 employees have transferred to a new employer and a total of 16 jobs have been lost.
The courier business, which has depots in Letham and Aberdeen and a fleet of 47 delivery vehicles, has been experiencing increasingly difficult trading conditions since expanding into the North East 4 years ago.
Shona Campbell of MHA Henderson Loggie has been appointed liquidator.
Established in 2006, SGM Distribution offered tailored same-day delivery service throughout the UK and counted national brands and local businesses among its customers.
Ms Campbell, MHA Henderson Loggie’s Director of Business Recovery & Insolvency, 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.
“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.”
