Clugston Distribution Services has swooped for a struggling fellow Humber transport business, saving 18 jobs.
The Scunthorpe operator, itself bought out from the collapse of the wider Clugston Group, has taken on the trade and assets of Trans 2 Logistics Ltd, after administrators were called in.
The Hull-based company specialised in the transportation of abnormal loads.
Sean Williams and Phil Deyes, of Leonard Curtis Business Solution Group, were appointed last month, and despite attempts by directors Alan Johnson and Andrea Russell to secure additional funding, with personal investments made, an accelerated marketing campaign to secure a sale was launched.
They said a loss-making contract served in 2019 was exacerbated by Brexit uncertainty and a drop off of work in the pandemic, leading it into financial difficulties, with stakeholders consulted ahead of the move.
Alistair Clugston, managing director, was one of 11 to make an expression of interest, sealing the undisclosed deal for the Rix Road firm.
He said: “We are pleased to have purchased the trade and assets of the Trans 2 business.
“The transaction had to be undertaken in a short space of time due to the constraints and pressures facing the business. To have been able to save another 18 jobs is pleasing, and we are hopeful that we can build on the opportunities this trade can provide to CDSL.
“The transaction was also made possible due to the swift responses of both our investors, The HLD Group of Companies and our lawyers, Addleshaw Goddard. They worked closely and expeditiously with the management team to get to the right result for all key stakeholders.”
Mr Clugston led a consortium of investors to buy out the distribution arm of the high-profile construction casualty in early 2020. Clugston Distribution was not part of the shock collapse of the £175 million family-owned firm, with a fleet of bulk, steel and fuel vehicles as well as a Renault Truck franchise and own maintenance and testing facilities off Brigg Road taken on.
LCBSG director Sean Williams said: “Unfortunately, market conditions have resulted in the company being unable to continue to trade. However, the team here at LCBSG and our partner advisers have delivered the best possible result under the circumstances.
“The transaction had to be completed in a very short timeframe, which was governed by the lack of working capital within the company. We believe that the pre-pack has maximised asset realisations for creditors and, most importantly, safeguarded the employees’ livelihoods. We’d like to thank the directors of the company for their co-operation in what was a very distressing time for them.”
