Member Article

72 jobs saved at Scunthorpe transport firm bought out of administration for £1.2 million

All 72 permanent jobs at specialist Scunthorpe transport company Westram Ltd have been saved after it was bought out of administration for £1.2 million.

The Newdown Road based business specialised in the transport of abnormal loads and had been operating for more than 30 years, until insolvency practitioners from the Leeds’ office of Wilson Field took were appointed.

Hexagon Leasing Ltd, a Derby-based independent provider of contract hire and fleet management services, and also a significant creditor of the company, stepped in to acquire the company’s business and assets and preserve the future of the business and the 72 employees’ jobs.

Kelly Burton and Joanne Wright from insolvency and business turnaround specialist Wilson Field were appointed on 15 July after HMRC issued a winding-up petition when a “Time to Pay” scheme failed.

Tax arrears had accrued when the company faced cash flow problems following difficulties managing a substantial contract and complications with the company’s debtor ledger.

Wilson Field has worked closely with business support and restructuring partner Ben Slack from the Leeds office of lawyers Addleshaw Goddard to find a buyer, pay the secured creditor in full and secure the jobs in two weeks. The business boasted a number of long-serving employees.

Kelly Burton, associate director at Wilson Field in Leeds, said: “It is always sad when an established business runs into difficulties but very rewarding when the outcome means that the business will continue and all 72 jobs have been preserved.

“Upon appointment, we reviewed the company’s operational position, discussed the options available with the directors and were able to strike a deal with Hexagon.

“As a result of this, the business now has a promising future and its employees can look forward to new horizons.”

The business operated by Westram has transported all types of containers, cabins, mobile homes and cranes. It has carried out transport for all the major buildings manufacturers to sites within the UK and many parts of Europe including 3,000 modular buildings to all Olympic London 2012 sites.

This was posted in Bdaily's Members' News section by Clare Burnett .