A UK family-owned transportation company that went into administration has been successfully rescued, securing 61 jobs and maintaining its logistics operations. Monex Distribution Ltd has completed the acquisition of Freight Movement Limited, based in Newport, South Wales, ensuring the retention of all 61 employees.
The decision to appoint Huw Powell and Katrina Orum from BTG Begbies Traynor as Joint Administrators was made by the director of Freight Movement due to financial struggles, including losses from a closed depot, rising overheads, unpaid invoices, and other challenges that led to insolvency. Shortly after, Monex Distribution Ltd, part of the Monex Group haulage network, acquired the business through a pre-pack administration deal, which included taking over Freight Movement’s 50,000sq ft warehouse.
This acquisition, as stated, not only benefits the creditors but also guarantees uninterrupted delivery services for clients. Freight Movement, in its prime, managed a wide range of logistics services, including contract logistics, pallet network, and general haulage, catering to various industries with diverse goods.
James Howells, CEO of Monex Group Limited, expressed enthusiasm for adding the established company to their network, emphasizing the potential for growth and synergy with their existing teams. The challenging environment post-Brexit and COVID-19 has impacted the haulage sector, making profitability difficult for smaller businesses. Despite years of operation, Freight Movement struggled to overcome these obstacles, leading to the acquisition by Monex Group.
Huw Powell from BTG highlighted the importance of preserving jobs and maintaining service continuity for clients through the sale to Monex Group. The transition was facilitated by the support of various parties involved, ensuring a swift and successful process.