The struggling South Yorkshire-based McGregor Logistics has been acquired in a pre-packaged deal, safeguarding numerous positions.
- The acquisition was finalised with an unrelated entity for £1.7 million, which includes an occupancy licence for key facilities.
- McGregor Logistics faced financial challenges after losing major contracts and incurring high operational costs.
- The transaction prevented a potential closure and ensures ongoing service to clients.
- 79 employees will transition to the new ownership, although 23 others face redundancy.
In a strategic move to salvage the struggling McGregor Logistics, the South Yorkshire haulier has been sold in a pre-pack deal worth £1.7 million to an independent company. This transaction is significant as it not only protects several jobs but also includes a 12-month licence for the new owners to occupy the haulier’s principal facilities at the expansive G Park warehouse in Doncaster, alongside a smaller office in Cardiff.
The financial struggles of McGregor Logistics stemmed from the loss of crucial contracts that severely affected its revenue streams and cash flow. The impact of these losses was exacerbated by substantial rent and lease obligations, particularly following an ambitious expansion into the G Park premises in November 2022. Facing such financial strain, McGregor Logistics engaged Forvis Mazars to oversee the administration process.
Two prospective buyers emerged during the administration phase; interestingly, one was linked directly to McGregor Logistics. Ultimately, the sale to the unconnected business was agreed upon and finalised at the end of October. This change in ownership has facilitated the retention of 79 employees, although, regrettably, 23 staff members were made redundant immediately as part of the restructuring effort.
Included in the deal is an option for the new company to purchase McGregor’s unencumbered fleet of vehicles within 20 days at pre-agreed prices, a fleet valued at nearly £503,000 if acquired in its entirety. This aspect of the deal highlights the strategic importance of the assets to the continuity of operations under the new management.
The administrator’s report to creditors highlighted that the sale was instrumental in ensuring that customer services continued without disruption. This continuity is key to maximising the realisation of debts and securing a financial outcome far more favourable than that expected had the business been closed down. McGregor Logistics has been in operation since 2004, specialising in various transport services, including biomass and renewable energy products, alongside traditional logistics operations.
The pre-pack administration deal has afforded McGregor Logistics a much-needed lifeline, preserving operations and safeguarding jobs.