Friday, August 7, 2009

Leggetts Transport may be sold

Troubled road haulier viewed as possible purchase
Shipping News Feature

UK – Suffolk based road haulage operator Leggetts Transport, who went into administration last month, may have found a possible purchaser for the company.

Administrators Smith and Williamson have stated that the company continues to trade and a possible purchaser is currently negotiating terms with them with a view to taking over operations in the next few weeks. Hopes are high that the current staff of around seventy can be retained.

Leggett’s sales manager, Mr Roy Legget said: "It's very difficult. We have been about a long time and it's not the first problem we have seen over the years, but this time it's happened so quickly and violently." He added that cuts were made to existing staff levels in May but the firm’s demise was unavoidable.

A statement from the Road Haulage Association’s district representative, Mr Peter Butler, senior area manager, placed the blame for many of the industry’s current problems squarely on the shoulders on the Government.

In a statement he commented that "It used to be that wages were the biggest overhead for haulage firms, but now fuel costs make up 40 and in some cases 50% of a haulage companies overheads.”

He added that a cut in fuel duty to assist the industry was essential to prevent more hardship.