Andrew McTear and Chris McKay of East Anglia-based business rescue and insolvency firm McTear Williams & Wood were appointed joint administrators of Searon Logistics Limited on August 8, although the company ceased operations during July.
In a statement, the administrators said that Searon was incorporated in November 2008 and grew significantly to achieve a turnover of more than £15m in the year to March 2015.
However, they added: “Following significant changes in the market in the following year there were too many trucks chasing too little work, resulting in haulage rates dropping.
“During 2017 all of the shipping lines announced they were changing alliances and the company’s largest customer moved its based from Felixstowe to Southampton causing significant increased costs to the company in continuing to service this customer’s requirements.
“The pressure on cash flow increased as a result and significant losses were incurred and this could not be sustained.”
Attempts to find a buyer for the business or a new investor failed and the company ceased trading on July 21. In addition to its Felixstowe headquarters, Searon is understood to have had bases in a number of other locations including Southampton, Peterborough and Doncaster.
Joint administrator Chris McKay said: “It is a sad day when a company employing such a large workforce of over 100 people in the area ceases to trade with no prospect of a sale of the business”.
Pressure has been growing in the logistics sector in recent years, with other casualties including Felixstowe-based Deben Transport which went into administration in 2015 with the loss of more than 200 jobs.
Consolidation in the sector last year included the acquisition of MacIntyre Transport and Goldstar Transport, also both based in Felixstowe, by Turners (Soham) Ltd.
Source used: Ipswich Star