Rhys Davies Logistics, one of the UK’s largest haulage companies has fallen into administration.
The logistics group currently operates multiple branches in its network of warehouses across the UK with over 560,000 square feet of warehousing and a fleet excessing 170 vehicles.
Ian Vickers and Philip Harris, partners at business advisory firm FRP, were appointed joint administrators to the company on 8 December.
Following the appointment of FRP, the administrators have reportedly begun the orderly “wind-down” of the business which has resulted in a number of members of staff being made redundant.
The administrators said they were open to considering “serious offers” from interested parties who are looking to acquire the business and assets of the company.
Additionally they will be working with their agents to arrange for customers’ goods to be returned to them, either through collection or utilising logistics services available across the Cathay Group.
Founded in 1952, the Cardiff based company had been acquired by Cathay Group after a “long period of losses” and despite significant investment from its owners since acquisition, the Covid-19 pandemic has resulted in “significant and unsustainable” losses of revenue.
The group added that the administration does not impact any of the other businesses in the Cathay Group.
Steve Baluchi from FRP, said: “The impact of the pandemic has resulted in unsustainable losses for the company and left the directors with no option but to place the business into administration.
“We will now be focused on the orderly wind down of the business and returning customers’ goods to them as quickly as possible. We are also working with staff to support them and help make any claims to the Redundancy Payments Service during what we recognise will be a difficult time.”