Buyers are being sought for MJ & CM West Transport Services, a Western Australian business which has been operating for over 20 years.
Advertisements were placed in major newspapers advertising the business for sale today by Rob Kirman and Jason Preston of McGrath Nicol, the receivers and managers of the transport company.
Murcolbar Holdings, which trades as West Transport Services, specialises in transport, crane trucks and logistics and has operations in Perth, Port Hedland and Karratha.
It was turning over more than $12 million a year before collapsing into administration in December last year.
West Transport Services has around 30 employees who are all still employed by the business.
Kirman told SmartCompany there’s been a lot of interest in West Transport Services already with seven enquiries from only one day of advertising.
“It’s been business as usual since the company went into receivership last Wednesday and we’ve had excellent support from the suppliers, customers and employees,” he says.
“It’s a longstanding business so it’s pleasing to be able to sell it as a going concern.”
Kirman says the receivers are in the process of preparing an information memorandum and other information to provide to parties.
He says the transport industry has been hit hard by the economy’s shift away from mining.
“The transport sector at the moment particularly those relying on resource-based industries are going through a challenging time,” he says.
“West Transport Services suffered from a definite reduction in revenue and increased competition in the sector.”
Kirman says West Transport Services’ debt levels were just not sustainable.
“It had strong earnings but couldn’t service the level of debt the business was carrying,” he says.