Many industries and sectors have had challenges to deal with since the arrival of Covid-19. It is clear that some sectors are being hit harder than others.
The Transport & Logistics sector is one such sector and these challenges will be compounded by changes in some procedures come the end of the transition period of Brexit.
Here at Lambert Smith Hampton we have begun to see the signs of a difficult period ahead for this vital sector to the UK economy with early conversations taking place regarding a possible rise in insolvency cases.
There is a diverse range to the businesses operating in this sector from one-man bands through to large national players. One aspect of the end of the Brexit transition period on 1 January 2021 will be the need for full border customs checks on trade with the UK and registration with the appropriate Customs authority.
The European Commission has said “The fact that the United Kingdom will no longer participate in Union policies as of the end of the transition period will create barriers to trade in goods and services and to cross-border mobility and exchanges that do not exist today”.
This means that inevitable disruptions will occur as of 1 January 2021 and risk compounding the pressure that businesses are already under due to the Covid-19 outbreak.
The Road Haulage Association said it believed there would be 200 million additional pieces of paperwork as a result of increased customs checks.
Over the last couple of years Lambert Smith Hampton, through our Machinery and Business Assets team, which includes our Insolvency and Restructuring experts, have been involved in a number of both insolvent and solvent closures of businesses in the logistics sector. The latter where owners have decided they no longer want to continue in an ever increasingly complex environment. We have assisted with a wide range of needs from the sale of the whole business or of the individual assets, with successful outcomes for all parties. See below some examples of our work.
We believe it important to all parties to take early advice on all the alternatives available when considering the sale or closure of a business ensuring the best possible outcome for all stakeholders. If you would like any such advice in either the logistics sector or any business type please do contact either myself or one of your local regional team.
Paul Davis Freight Services Ltd
Valuation and sale of assets in Bristol, Southampton and the Channel Islands via private negotiated sales and online auction on behalf of Grant Thornton LLP.
Ian Aldridge Transport Ltd
Valuation and sale of tangible assets, including the sale of their freehold premises, via private treaty sale on behalf of BDO (Administrators).
LSH valued 40 tractor units and 140 trailers and provided a detailed strategy on logistics for collection and storage upon closure on behalf of Administrators, Portland Business and Financial Solutions Ltd. Further instructed to sell assets on behalf of company and three finance companies.
Harris Transport Ltd
LSH prepared valuation of 35 trucks and 29 trailers and a executed a detailed disposal strategy on behalf of Administrators, RSM Restructuring Advisory LLP.
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