The rising cost of fuel has claimed another victim in the transport sector after SFP, the nationwide insolvency practitioners, was appointed Administrator of Yellow Star Travel Services. The Suffolk-based coach hire company has run up large debts that are directly attributable to the current high cost of fuel.
Yellow Star Travel provides a range of coach and bus travel services throughout Suffolk and the South East and is headquartered in Bury St Edmunds. It employs around 50 members of staff and has an annual turnover of £3million.
SFP’s Daniel and Simon Plant – both licensed members of the Insolvency Practitioners’ Association – were appointed Joint Administrators on 25th May 2011.
The rising cost of fuel has hit businesses hard over the last 12 months and with low margins for contracts, more businesses could end up failing without careful cash management says Simon Plant, Group Partner, SFP. “Yellow Star Travel is the third instruction that we have seen recently that has cited fuel prices as a reason for struggling. To avoid these pitfalls, the transport sector has to look closely at its books before making any major business decisions,” he continues.
“We are currently in discussion with potential buyers and look to make a successful sale of the business as a going concern,” Simon adds.