Transport company with $10 million turnover collapses as industry remains under pressure
Wednesday, May 21, 2014/
A transport and logistics company with a turnover of over $10 million a year and 50 employees has collapsed into administration.
Andrew Cummins and Brian Silvia of BRI Ferrier were appointed as administrators of Roadwise Transport Group last month.
Cummins told SmartCompany Roadwise Transport has continued to trade while the administrators seek a buyer for the company.
He says the Sydney-based business fell into administration after 15 years’ trading after suffering a large loss in the 2013 financial year.
“The loss was due to a loss of customers and an inability to match overheads with turnover,” Cummins says.
The second creditors’ meeting is scheduled to be held next week in Sydney.
Cummins says there has been “some interest” from potential buyers and the administrators should know by next week whether anyone is available to purchase Roadwise Transport.
“If there’s a sale of the business some of [the 50 employees] will retain their jobs,” Cummins says.
Roadwise Transport’s demise follows the collapse of transport giant Wettenhalls last year and the liquidation of Trailer Corporation of Australia, Macfield Leasing Corporation and Macfield Intermodal Equipment Corporation.
At the time, IBISWorld analyst Caroline Finch told SmartCompany the transport industry has been put under a significant amount of pressure.
“There are very low barriers to entry at the bottom level, which means there are a lot of small players coming in and out, which keeps price margins pretty low,” she says.
“There is also consolidation happening, with bigger trucks and the productivity gains there, they can squeeze a few operators out.”
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