As posted on our sister forum RoadTransport.com
Newport firm Ellis Morgan forced to close
21 January 2010
Two haulage firms have been left reeling by the closure of packaging firm Western Corrugated, while a third has had to close after 180 years in business.
Western, with plants in Cwmbran and Wolverhampton, went into administration on 4 January with KPMG appointed to handle its closure.
Hardest hit is Rogerstone, Gwent, operator Ellis Morgan, which has been in business since 1820. It has been forced to close as a result of the bad debt, believed to be a six-figure sum, caused by Western’s failure. Ellis Morgan’s directors declined to comment.
The other two firms affected are Newport, Gwent haulier JP Bull Transport, which was working from the Cwmbran site and Padiham, Lancs operator Fagan & Whalley, which handled traffic from Western’s Wolverhampton factory.
A spokesman for JP Bull tells Roadtransport.com the company had been working for Western since April 2009 and is now owed approximately £165,000, “which the administrator said we are unlikely to see a penny of”.
As a result of the failure, JP Bull is winding down its Cwmbran operation and has made 12 redundancies. Its Chepstow and Monmouth depots are unaffected.
The spokesman adds: "The contract accounted for 25% of our turnover so it will be hard without it, but there was nothing wrong with our operations so we could not have done any more.
“It’s a shame we will suffer a loss because of another company going bust.”
Stephen Fagan, commercial director at Fagan & Whalley, says the Western Corrugated business accounted for 15% of its turnover. “As of late the contract was becoming quite a worry. Employees are now my main concern because there will be a lot of redundancies,” he says.
Fagan declined to reveal how much the company was owed from Western’s failure, but it is likely to be similar to the debts experienced by the other hauliers.
The move to administration also saw 132 of Western’s employees made redundant.
Joanna Bourke
Email at joanna.bourke@rbi.co.uk
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