An Ebbw Vale haulier business has collapsed due to soaring fuel costs.
The winding up of Scott Commercials has resulted in the loss of 10 jobs with insolvency firm Begbies Traynor appointed liquidators.
Established in 2013 Scott Commercials provided road haulage services to transport operators across the UK. The liquidation is being handled by Bristol-based partner Paul Wood and Cardiff-based partner Huw Powell.
They said that recent rises in PAYE, fuel, ad-blue (fuel additive) and tyres had created significant cash flow issues for the business. Its fuel bills rose by nearly £5,000 net per week in June prior to its collapse.
Mr Wood said fuel price inflation had created immense pressures for many in the transport sector. He added: “The last 12 months has been an incredibly difficult time for hauliers, who have seen their overheads increase dramatically and rapidly. Despite efforts to reduce the impact, these challenging trading conditions proved untenable for Scott Commercials, and we will be working with the director to wind up the business and recover any assets on behalf of creditors.
“The rapid rising costs of raw materials does illustrate the need for business owners and directors to seek advice at an early stage if they are experiencing financial challenges. There are sometimes steps that can be taken which will help to place a company on a more secure footing - and reduce the risk of liquidation.”
According to a statement of affairs on Companies House, Scott Commercials has estimated total assets of £82,000 for preferential creditors, but an estimated £285,000 deficit for non-preferential creditors.
Creditors include HMRC which is owed £91,000 and Funding Circle Focal Point Lending, with £151,000.
The collapse firm also drew down a UK Government Covid response Bounce Bank Loan of £41,000, which was provided by Lloyds Bank.
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