Nationwide insolvency practitioners SFP has completed the sale of the business and assets of Mark Priestley SDT Ltd, a global logistics provider specialising in secure transport solutions and warehousing after it fell into administration.
Mark Priestley SDT had experienced substantial growth in 2017 to the extent it was having to refuse additional work due to existing workload. During 2018 a significant customer increased its billing from 35 to 7,000 invoices per month which resulted in payment issues and subsequent queries on the account.
This affected the company’s cash flow position which also impacted payments to suppliers and saw the company fall behind with HMRC payments for both PAYE and NIC.
A payment plan was rejected by HMRC and a winding up petition was issued against Mark Priestley Ltd. It appointed SFP’s joint-administrators Simon Plant and Daniel Plant – both licensed members of the Insolvency Practitioners’ Association (IPA) – on 22nd February 2019.
SFP organised valuation agents to market the business, collected deferred sale consideration, assisted with book debts and carried out statutory reporting and investigation into the downfall of the company.
This resulted in a Sale and Purchase agreement with PSDT Limited on 1st March 2019. Some 12 employees were transferred over to the purchaser via the TUPE process while a further 20 were made redundant.
“This is the best result for the company and its contracted employees,” says Simon. “We were able to quickly find a buyer and organise the sale within a week, ensuring the impact on trading and employees was kept to a minimum.”
“This is a prime example of how seeking expert help to turn a business around is vital. The responsible actions of the firm’s directors secured the future of as many employees as possible and also maintained good will with its customers.”