The Haulage Group faced a crisis as HS2 developers ordered a sudden eviction during Covid.
- The initial approach in 2009 led to a compulsory purchase order a decade later.
- A sudden one-week eviction notice in 2020 caused severe financial strain.
- The firm faced legal troubles following a tragic accident involving a reversed vehicle.
- A failed investment in recycling equipment further exacerbated cashflow issues.
In an unforeseen turn of events, The Haulage Group, based in Sutton Coldfield, encountered significant difficulties when HS2 developers issued a sudden eviction notice, compelling the company to vacate its premises within a week. This abrupt notification arrived amidst the global Covid pandemic, leaving the company with minimal time to adjust. Initially approached in 2009 regarding the proposed route of the HS2 development, the company did not receive further communication until 2019, when a compulsory purchase order was issued.
The eviction, originally extended due to pandemic conditions, was unexpectedly shortened to just one week. This forced relocation imposed severe financial burdens on the company, hindering its contractual obligations and stunting its growth prospects. Despite securing a new location in Minworth by June 2020, the firm’s haulage and freight operations continued to suffer due to the ongoing pandemic impacts.
Adding to its woes, The Haulage Group became involved in legal proceedings after a tragic incident where a depot worker was killed by a reversing vehicle at its premises. This legal battle culminated in a hefty fine of £300,000 plus additional costs, further draining the company’s resources.
Financial issues were compounded by strategic missteps, particularly a failed venture into recycling. The company invested in machinery expected to yield pure copper granules, only to discover its output was significantly lower than anticipated, producing merely two tonnes per hour instead of the projected nine to twelve.
Consequently, The Haulage Group’s cashflow worsened, leading to mounting arrears with HMRC and culminating in administration on 28 May. However, in a positive outcome, administrators CG & Co ensured job preservation by transferring most employees to Maybrook Fleetcare, an affiliated company sharing directorial leadership.
The Haulage Group’s downfall reflects a culmination of rapid eviction, pandemic impact, legal challenges, and strategic errors.
