Oil and gas logistics firm FreightCo goes bust, 19 jobs lost

KPMG said the group had, in recent years, suffered from challenging trading conditions in the oil and gas sector.
KPMG said the group had, in recent years, suffered from challenging trading conditions in the oil and gas sector.

The FreightCo group has gone bust, with 19 jobs shed among its 24-strong workforce, the provisional liquidators said yesterday.

FreightCo operated a logistics services business, primarily within the oil and gas sector, from its headquarters in Dyce, Aberdeen, and ancillary offices in Glasgow.

Blair Nimmo and Geoff Jacobs of KPMG were appointed as joint provisional liquidators of group subsidiaries Freight.co International, Freight.co Rapid Despatch and Crate.co on Monday

KPMG said the group had, in recent years, suffered from challenging trading conditions in the oil and gas sector.

It added: “Reduced turnover and margins, combined with longer payment terms from customers, left the company with a significant funding shortfall.

“The directors had been in discussions with a number of parties to purchase the business, however, it was not possible to complete a sale and due to increasing creditor pressure, the directors felt they had no option other than to appoint provisional liquidators.”

Five employees have been retained to help Mr Nimmo and Mr Jacobs to realise the group’s assets and collate the books and records.

The joint provisional liquidators are “rapidly exploring” whether an early sale of some of the business and assets can be secured.

Mr Nimmo said: “We would encourage any party who has an interest in acquiring any part of the business and its assets to contact us as soon as possible.”

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