Devon transport firm STR Logistics has been sold, securing 144 jobs. The Exeter-based business and its assets have been acquired by Devon & Cornwall Logistics Limited (DCL) for an undisclosed sum.
Insolvency practitioner SFP, which documents filed on Companies House show was appointed last month, confirmed STR was in administration at the time of the sale.
Founded in 2002 by Steven Richardson, STR provides home deliveries, pallet distribution and secure freight handling services across the South West.
In 2021 Mr Richardson sold the business to Anthony Quinn and Peter Adams, who were previously senior leaders at international logistics company Kuehne + Nagel, and had wanted to relocate to Devon to start their own venture.
At the time of that deal, the pair said they had plans to expand STR’s core region to include Gloucestershire, Bristol and South Wales and double the size of the business within five years.
Following a buy-out, the company’s turnover was on an upward trajectory increasing from £2.9m in the year to June 2020, to £3.7m in 2021 and £6.7m in 2022.
Administrators said a combination of rising costs, including fuel and wages, a shortage of available spare parts, increased lead time for vehicles and the general downturn of the economy, led to "numerous trading difficulties and the accumulation of creditor arrears".
Professional guidance was sought in December 2022, and after options were considered for the business, a marketing campaign was undertaken to source a buyer as part of a restructure, with the deal with DCL completed on January 31. .
Mr Quinn, who is DCL's chief executive, said that the new company would continue to trade under the banner of STR, adding: “Our new management team, improved corporate strategy and good old-fashioned excellent service will ensure this business can go from strength to strength.”
David Kemp, joint administrator at SFP, says that in the face of “very difficult circumstances” the sale achieved a “constructive outcome”.
Mr Kemp added: “The impact of record inflation and other economic constraints placed enormous pressure on STR logistics, which sustained irretrievable damage as a result.
“The sale to Devon and Cornwall Logistics Limited was the best solution to achieving the preferred outcome: the retention of STR Logistics employees, maximised value for stakeholders and ongoing services to the business’ valuable clients.”
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