Truswell Haulage has entered administration as challenging market conditions continue to affect the haulage sector.
- The company, established in 1940, operated over 50 HGVs from multiple locations in the UK.
- Administrators noted significant losses due to reduced demand and rising costs, leading to 86 job losses.
- An attempted business sale did not yield any offers, sealing the company’s fate.
- OTIF Distribution had acquired the business in 2021, but growth was unsustainable.
Truswell Haulage, historically known as John Truswell & Sons, has succumbed to formidable market conditions, marking yet another casualty in the haulage industry. Operating since 1940, the company had maintained a fleet of over 50 heavy goods vehicles across several UK bases, including a site in Lanarkshire. Despite its long-standing presence, the company could not withstand the sector-wide downturn.
The administrators, appointed by BDO, attributed the company’s collapse to a combination of dwindling demand and escalating costs. These challenges proved insurmountable, ultimately resulting in the loss of 86 jobs. The firm’s efforts to continue operations included an expansive sales process; however, no prospective buyers came forward, leaving the company with no viable future in the marketplace.
BDO’s business restructuring partner, Mark Thornton, highlighted the severe commercial losses faced by Truswell Haulage. He stated, “Unfavourable market conditions have led to unsustainable commercial losses and, unfortunately, it has not been possible to secure a future for the company.” The administrators are focused on maximising returns for creditors as they navigate the legal obligations in the aftermath of the company’s failure.
In a prior attempt to secure its finances, Truswell Haulage executed a sale and leaseback agreement for its Barnsley warehouse, yielding £3.4 million. This move aimed to bolster the company’s capital and facilitate future investment strategies. Nevertheless, these efforts were insufficient to reverse the company’s fortunes.
The acquisition by OTIF Distribution in 2021 initially painted a hopeful picture. It allowed the business some growth, evidenced by the increase in turnover to £12.2 million in the year ending July 2022. However, despite this growth, pre-tax profits declined by £43,000 to £388,000, indicating deep-seated financial issues that expansion alone could not remedy.
The demise of Truswell Haulage underscores the severe challenges facing the haulage industry today.
