The Gwynedd Shipping group of companies is facing significant financial issues, leaving unsecured creditors unpaid.
- The companies, which include Gwynedd Shipping, Gwynedd Transport, and Gwynedd Shipping Logistics, collectively owe nearly £8 million to unsecured creditors.
- Kroll, the appointed administrators, report that all efforts to secure a buyer have failed, both on a solvent and insolvent basis.
- The company’s staff, totalling over 120 employees, have been made redundant as a result of the financial collapse.
- The situation highlights common financial challenges within the transport and distribution sector, exacerbated by loss-making contracts.
The Gwynedd Shipping group, which consists of Gwynedd Shipping, Gwynedd Transport, and Gwynedd Shipping Logistics, has collapsed into administration, resulting in a significant financial turmoil that has left unsecured creditors in a precarious position. The companies collectively owe approximately £8 million, with accountants at Kroll indicating that these creditors are unlikely to receive any repayment.
Kroll, acting as the administrators, detailed that the firms had been grappling with cashflow difficulties due to trading underperformance. In a bid to resolve the situation, an accelerated merger and acquisition process was undertaken to find a potential buyer for the businesses. However, these efforts proved futile, with no viable offers materialising, neither on a solvent nor insolvent basis.
Gwynedd Transport, one of the key entities, offered freight transport services from four locations including Holyhead and Ellesmere Port, employing around 123 staff members. This collapse has led to the redundancy of all staff, affecting employees across all three companies, which includes 21 from Gwynedd Shipping and 23 from Gwynedd Shipping Logistics.
The financial assessment, as derived from the company records, reveals a debt distribution where Gwynedd Transport owes £3.4 million, Gwynedd Shipping £3.9 million, and the storage business Gwynedd Shipping Logistics £703,000 to unsecured creditors. Kroll has publicly stated that based on current financial information, no funds will be available to make any payments to these creditors.
This situation is emblematic of the broader financial challenges faced by the transport and distribution sector, as highlighted by Kroll, including loss-making contracts. The narrative resonates with other recent industry failures, such as L&M Transport and S&J European Haulage, demonstrating the ongoing economic pressures in this field.
The financial collapse of Gwynedd Shipping underscores significant difficulties within the transport sector, reflecting widespread economic challenges.
