David Kemp and Richard Hunt of nationwide insolvency practitioner, SFP, have been appointed Joint Administrators of Cross Transport Limited, a Birmingham-based company that provided road haulage services across the UK and Ireland.
Formed in 2010, the company traded successfully for many years, operating a wide range of vehicles from small vans up to 44t articulated vehicles. The company, however, faced numerous financial difficulties following the COVID-19 pandemic, primarily due to a rise in overheads and other costs.
The directors took the decision to cease trading at the beginning of June 2023. Subsequently, SFP were appointed Administrators shortly thereafter by the Company’s qualifying floating charge holder to undertake an orderly wind down of the Company’s affairs.
David Kemp says that “Cross Transport was in an untenable position in the face of rising costs and other financial difficulties. Despite not being able to salvage the business due to it having already ceased trading, steps could be taken in the Administration to protect assets and maximise recoveries.
“From rising fuel prices to driver shortages, 2022 was a difficult year for the road haulage sector. With many companies in the industry operating under the pressure of thin margins, we urge directors to seek professional guidance at the earliest sign of trouble. It would increase the chances of saving the business and securing the best result for the company and its employees.”
