Vehicle delivery firm in pre-pack sale after losing key client
A Leicester-based national vehicle delivery firm collapsed into administration after it lost a significant contract and saw £100,000 of work per month wiped off its revenues.
Pro-Driver Logistics was described by administrators at Begbies Traynor as “historically profitable”, but it began to struggle when its key client, motorway.co.uk, reduced its work by 90% overnight in October 2021.
In a report to creditors, Begbies Traynor said that by February 2022 the company, which relied on sub-contractors to move vehicles to order under trade plates, but also held a licence authorising 10 HGVs, had lost over 30 of its subbies as it had lost so much work.
Pro-Driver Logistics entered administration earlier this month, but its director Jonathan Ronchetti believed it could attract work from other customers and so a pre-packaged sale of the business and assets was arranged.
A connected business, Weston Wood House, put in an offer of £108,250 and this was eventually agreed with the sale going through on 7 April.
The director of Weston Wood House is Ronchetti’s wife Susan.
The report said: “It was recommended that a pre-packaged sale of the business and assets through an administration was the best way to maximise the realisations and preserve the goodwill, business relationships and ensure that the employees’ jobs are retained.”
Begbies Traynor said ProDriver Logistics had 29 trade and expense creditors owed around £39,000; it added that based on estimated future realisations, there would be insufficient funds available to unsecured creditors.
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