Gwynedd Shipping files for administration

North Wales logistics and shipping company Gwynedd Shipping has filed for administration, the local council has reported.

The Holyhead-based company has been trading for nearly 40 years, specialising in shipping, transport, warehousing and customs clearance services and specialises in the construction, steel and FMCG sectors.

Operating a fleet of over 650 trailers, the company is estimated to employ at least 142 people at its sites in Holyhead, Anglesey and at other sites in Wales, England and Ireland, in addition to a number of HGV drivers.

Gwynedd Shipping’s latest strategic review, published in February 2023, noted that its directors commented they had “a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future”.

Last year, Gwynedd Shipping delivered a profit of £893,749 and had net assets of £918,995, but added that this included a net current liabilities position of £270,629.

On 15 January 2024, two joint administrators from risk and financial advisory solutions provider Kroll were appointed for Gwynedd Shipping Limited and Gwynedd Transport Limited. A statement from Kroll noted that the businesses ‘have faced financial challenges common in the transport and distribution sector including certain loss-making contracts’.

The statement continued: ‘Unfortunately, due to the extent of legacy liabilities, the businesses were unable to secure their future on a going concern basis and as such the majority of employees were made redundant with immediate effect as the businesses ceased to trade upon appointment.’

The joint administrators are reportedly ‘in discussions with several parties interested in acquiring certain assets, contracts and routes and it is hoped that this will provide opportunities for a number of former employees’ and ‘support is also being provided to former employees to ensure that statutory entitlements can be claimed’.

An Anglesey Council spokesperson said: “We are aware that the company has apparently entered into administration. We are currently trying to engage with the company to establish the current situation.

“The county council will provide what support it can to those affected, working in collaboration with Welsh government and other partners.”

Source: logisticsmanager.com