A guide, not advice. This explains how things generally work. A licensed insolvency practitioner will tell you what applies to your company or to you.
Insolvency for Transport and Logistics
Transport and logistics is a high-volume, low-margin sector with significant fixed costs - vehicles, fuel, premises, and staff. Cash-flow pressure can build quickly when fuel prices spike, contracts are lost, or costs rise faster than rates.
Our Manchester-based, ICAEW-licensed practitioners have experience helping transport and logistics companies through financial difficulty.
Why Transport and Logistics Companies Fail
- Rising fuel and energy costs
- High fixed costs - vehicles, premises, and staff
- Lost contracts - particularly when a major customer fails
- Driver shortages and wage inflation
- Thin margins on competitive routes
- Vehicle finance and leasing commitments
Sector-Specific Considerations
Vehicle Finance
Most transport companies finance their vehicles through hire purchase, leasing, or fleet finance. In an insolvency, vehicles on finance generally revert to the finance provider, affecting the company's ability to continue operating.
Operator Licensing
Transport companies hold operator licences, which can be affected by financial standing requirements. Insolvency can have licensing implications that affect the ability to trade or transfer the business.
Asset Values
Vehicles have a ready second-hand market, which helps realisation, but values are subject to market conditions and mileage.
Your Options
- Negotiation with customers, suppliers, and finance providers
- CVA - restructure debts while continuing to operate
- Administration - protection while the business is sold as a going concern, preserving vehicles, routes, and jobs
- CVL - orderly closure where the business is not viable
Speak to a Licensed IP
Transport insolvencies need practitioners who understand the sector's licensing, finance, and asset issues. Our Manchester-based team will assess your position honestly and advise on the best route - free and confidential.