More than 200 roles have been axed at a logistics firm after it lost contracts and started to suffer problems related to rising fuel prices and other costs.
Solihull-based Corporate Solutions Logistics operated from sites across the UK and specialised in transporting goods for the supermarket industry.
But administrators from FRP Advisory were appointed to the company earlier this week shortly after it had ceased trading.
As a consequence, more than 200 employees have been made redundant, with only a skeleton staff retained to help with the winding up of the business' operations.
FRP said that, in recent months, Corporate Solutions Logistics had suffered from financial difficulties after the loss of some long-standing contracts and continued pressure on its profitability due to the rise in fuel prices and other input costs.
The directors conducted an accelerated sale process to find a buyer for the business and bring in fresh investment but, with no viable offers, they were forced to close down, FRP said in a statement.
Raj Mittal, partner at FRP and joint administrator, said: "Like many other businesses in the logistics sector, Corporate Solutions has had to contend with a rapidly rising cost base, not least driven by high fuel prices, as well as weak economic growth and fierce competition over contracts.
"The business was unsustainable without any further investment and, with the business having ceased to trade, we will now move towards realising its assets. Regrettably, almost all roles at the business have been made redundant.
"We have a team providing support for impacted staff as they make claims to the Redundancy Payments Service during this difficult period."
