Cash-flow pressures prove too much for South Australian company
Allsons Transport has gone into administration due to spiralling costs.
The South Australian-based company which was formed in 1987 went into administration on May 7.
Adelaide-based accountancy firm Heard Phillips was appointed administrator of the transport, warehousing and distribution services which has depots in Wingfield and Victoria’s Laverton North.
Partner Andrew Heard says unprofitable trading has crippled the company.
“Unprofitable trading has put a great deal of pressure on cash flow that’s resulted in the company being unable to keep commitments with some key suppliers,” Heard says.
“At that point in time the directors have recognised insolvency and have tried to find alternate financing – they’ve tried to find a buyer and have acted responsibly to appoint an administrator once they found those options couldn’t be carried out.
“We have ceased the company’s trading and we are now running up the stock so the warehousing customers are at least interrupted as possible.”
The linehaul operations ceased on May 7.
Fifty-five of the 75 employees have been made redundant already.
The company’s total liabilities total about $8 million.
It has around 400 customers.
A meeting with creditors will be held on May 16.