Bathgate haulier MRS Distribution has ended weeks of speculation about its financial health after it collapsed into administration late on Friday (6 August).
Blair Nimmo, Tony Friar and Neil Armour of KPMG have been appointed joint receivers of MRS, which had an annual turnover of around £28m and operated from 11 sites across the UK.
Two other group companies, JBT Distribution and Clanna, continue to trade as normal; these businesses have been acquired by the current JBT management team, which includes former MRS director Ian Wilson.
JBT was bought by MRS two years ago, but in a reversal of fortune the £15m turnover Highlands and Islands specialist has acquired the entire Scottish operations of MRS, with 96 employees transferring with immediate effect. KPMG says the sale of the JBT business has safeguarded 240 jobs in total.
A significant part of MRS’s English business has been sold to Bibby Distribution as part of a separate transaction; 103 employees have transferred to Bibby with immediate effect. The remaining 43 MRS employees have been made redundant.
Blair Nimmo, head of restructuring for KPMG in Scotland, says: "Like many hauliers across the UK, MRS has experienced challenging trading conditions due to the economic downturn. As a result, market demand has contracted, leading to increased competition and lower margins in the marketplace.
“Although turnover has remained relatively strong, falling margins have reduced profitability, resulting in trading losses and cash flow problems. The directors took steps to reduce the company’s cost base, but losses continued and the directors ultimately had no option but to apply to place the company into insolvency.”
Something seems fishy to me - MRS buys JBT - MRS goes bust - now JBT owns the whole lot in scotland Ive never been business orientated but it all seems a tad odd.
I wonder what will happen to the Fields and Board24 contract up here. There’s no mention of Bibby taking over the Board contract in Larkhall. I’m guessing the Renos will have MRS pulled off them and JBT stuck on
is there something about renault premiums an big companys.
city transport went down for £43 million,
A few million unaccounted for.
but then we did smash the lorrys up as we turned them in ,
so we had our fun.
Saw a load of their motors in East Kilbride today as well, and was thinking they where doing well opening a new depot.
The reason I probably noticed is because there was so many trailers in the yard right enough, so that explains why.
They couldnt have been there long as I used to collect out of there a couple of years back, (think it was Panasonic or something) so their troubles must have come on pretty fast or theres something iffy right enough.
aranger:
Saw a load of their motors in East Kilbride today as well, and was thinking they where doing well opening a new depot.
The reason I probably noticed is because there was so many trailers in the yard right enough, so that explains why.
They couldnt have been there long as I used to collect out of there a couple of years back, (think it was Panasonic or something) so their troubles must have come on pretty fast or theres something iffy right enough.
looks like the plugs been pulled the creditors want to know where the rolling stock is.
Steve-o:
Blair Nimmo, head of restructuring for KPMG in Scotland, says: "Like many hauliers across the UK, MRS has experienced challenging trading conditions due to the economic downturn. As a result, market demand has contracted, leading to increased competition and lower margins in the marketplace.
“Although turnover has remained relatively strong, falling margins have reduced profitability, resulting in trading losses and cash flow problems. The directors took steps to reduce the company’s cost base, but losses continued and the directors ultimately had no option but to apply to place the company into insolvency.”
Which is a posh way of saying ‘They carved the rate up so much to obtain the work in the first place that they couldn’t make any money doing it’
scania245:
looks like the plugs been pulled the creditors want to know where the rolling stock is.
smash them up as you pull them in boys.
so what does that achive exactly
SATISFACTION at city we were pursued by baliffs at services , was that tere unit /trailer.
went on for weeks, i was loading in wales met another drive plugs been pulled.
phoneed the gaffer have i got a job no
thanks for telling me.
my reward no job there were no jobs there a bit like now 3 kids mortgaged to hell,
satisfaction why not.
got work but had to do a tebbit on me bike.what they gonna do sack you.
aranger:
Saw a load of their motors in East Kilbride today as well, and was thinking they where doing well opening a new depot.
The reason I probably noticed is because there was so many trailers in the yard right enough, so that explains why.
They couldnt have been there long as I used to collect out of there a couple of years back, (think it was Panasonic or something) so their troubles must have come on pretty fast or theres something iffy right enough.
Ive never been business orientated but it all seems a tad odd.
