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A 25-year-old Scottish company, with a base in North Lanarkshire, has fallen into administration just two years after it was bought over. Kintore-based Caledonian Logistics has gone into administration after being acquired by Drac Logistics, the P&J has reported. The haulage firm, which was started in February 1999 by Derek Mitchell, employs around 130 staff and has depots in Cumbernauld, Inverness, Oldmeldrum, and Kintore.
It also owns a parking yard in Lockerbie. After revealing the devastating news, the company blamed 'challenging trading' conditions and a lack of 'funding support' from its parent company. Administrators Donald McNaught and Graeme Bain of Glasgow's accountancy firm, Johnston Carmichael, were appointed on November 28.
READ MORE: Retailer with Glasgow store bought out of administration An appointment of administrators file was uploaded to the UK Government companies house system for the firm on December 2. Meanwhile, the trucking company's website is also unavailable to access on the internet. Luckily, some of Caledonian Logistics assets have been bought by Aberdeen family firm GS Light Haulage - which has helped save 60 jobs at the Kintore, Inverness, and Lockerbie basis.
GS owner Johan Skea confirmed they have taken over the Palletways contract which will retain jobs. She told the P&J: “With the regrettable downfall of Caledonian Logistics, an opportunity to grow GS came with the offer of a new contract with Palletways. “GS Light Haulage agreed new terms with Palletways and became a fully paid up member within their network thus securing jobs that would have otherwise been lost with the demise of Caledonian Logistics.
“We also retain the rights to the Caledonian Logistics name. “We are delighted to play a huge part in saving so many jobs and look forward to working with staff and customers new and old in what is hoped to be a bright future.” In 2022, the haulage business was bought over by the English company, Drac Logistics, however, the administrators revealed it had been 'challenging trading' conditions since then.
A statement said: “While the company had successfully cut costs and increased turnover, it was unable to return to profitability in the short term. “The company had recently exhausted efforts to sell the company or the underlying business and assets. "These efforts were unsuccessful and the company ceased trading prior to administration.
“Fortunately the large majority of jobs were retained as a result of new operators picking up the routes the company serviced with the additional benefit of minimising the impact on customers.”.
