Inverness-based logistics company, Caledonian Logistics, has entered administration, just three years after being acquired by Staffordshire-based Drac Logistics.
The company attributed its financial difficulties to “challenging trading conditions” and a lack of funding support from its parent company.
Caledonian Logistics, which employs approximately 130 staff, operates 80 trucks and 103 trailers, and has depots in Inverness, Cumbernauld, Oldmeldrum, and Kintore.
Joint administrators Donald McNaught and Graeme Bain of Glasgow-based accountancy firm Johnston Carmichael were appointed on 28 November.
A spokesperson for Johnston Carmichael said:
“This follows a period of challenging trading after the company was acquired in October 2022, subsidised by its parent company. While efforts to cut costs and increase turnover were successful, the return to profitability relied on ongoing financial support, which was not forthcoming. Attempts to sell the business or its assets were unsuccessful, and the company ceased trading prior to administration.
“Fortunately, the majority of jobs have been retained through new operators taking over routes previously serviced by the company, minimising the impact on customers.”
Acquisition and Decline
Caledonian Logistics was purchased in October 2022 by Drac Logistics, trading as Drac Global, following the retirement of its former owner, Derek Mitchell. At the time, Drac Global announced plans to expand the business, including establishing a container haulage division and investing £600,000 in new fleet vehicles.
Despite these ambitions, the company faced mounting financial pressure. Its most recent financial results, for the year ending 30 April 2022, revealed a turnover increase to £15.2 million, up from £14 million the previous year. However, it reported a pre-tax loss of £872,108, a stark contrast to the £134,470 pre-tax profit recorded the year before.
New Operators Step In
Ahead of the administration, Aberdeen-based GS Light Haulage took over Caledonian Logistics’ contract with Palletways, a move that secured around 50-60 jobs.
In a statement, GS Light Haulage said:
“With the regrettable downfall of Caledonian Logistics Ltd, we saw an opportunity to grow GS through a new contract with Palletways. As of 18 November 2024, we became a fully paid-up member of the Palletways network, securing jobs that would have otherwise been lost.
“GS Haulage Ltd, trading as GS Palletwise, also retains the rights to the Caledonian Logistics name and looks forward to working with staff and customers, both new and old, towards a brighter future.”
The Palletways contract accounted for about half of Caledonian Logistics’ business, providing a critical lifeline for many employees and customers impacted by its closure.
Pity the new owners don’t pay their bills unlike the previous company owners of GS Light Haulage heard one of the owners is not allowed to have anything to do with transport and the other owner had his operators licence revoked such a pity to see a company that was honestly run and suppliers paid on time to now running without funds and by dishonest people. The suppliers are disgusted by the lies that David Booth has been telling them as they have done a lot of research on him a man that has been charged with attempted murder and animal neglect and just continues to spout lies and thinks everybody are fools and believe everything that he says. I would avoid doing any work for this company now as you have no chance of getting paid.
I would urge transport company not to have any dealings the new owners do not pay their suppliers the old owners had a fantastic reputation in Aberdeen for paying their suppliers now all the people who are owed money is lies by from a man who is not allowed to have anything to do with a transport company has been charged with attempted murder and animal neglect