The cold chain division of Pure Logistics has been placed into administration over mounting debt and fuel costs. The national Cold
The cold chain division of Pure Logistics has been placed into administration over mounting debt and fuel costs.
The national Cold Chain haulage and transport business, which handles frozen and chilled goods, makes up more than half of Pure Logistics, with 260 employees and 100 contractors.
KordaMentha has been appointed receivers and managers for the business.
A spokesperson tells ATN fuel costs are largely to blame, with the “double whammy” of diesel use to run trucks and the refrigerated trailers.
Secured lenders, after working with Cold Chain for an extended period of time to resolve the company’s difficulties, exhausted their options and yesterday appointed Janna Robertson, David Winterbottom and Mark Mentha of KordaMentha.
Robertson says the primary objective of the administration is to sell the business as a going concern.
“We will continue to operate the business whilst seeking expressions of interest,” she says in a statement.
“We are in discussions with a number of interested parties. Our priorities are ensuring an orderly transition of the customers and employees to a buyer who is able to ensure continuity of service to customers and continuity of employment.”
Robertson says the priority entitlements of workers are secure and will be paid as normal.
Subcontractors will be paid for their work in the ordinary course of business.
The operations of McColls, a related transport and logistics company which has operated under the Pure Logistics brand, are unaffected.
Private equity group ABN AMRO Capital purchased both McColls and Scott’s Refrigerated Freightways in 2005, rebranding them as Pure Logistics. Produce carrier ID Transport was added to the company in 2006.